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Consumer trust and willingness to pay for certified animal-friendly products

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Author Info
Giuseppe Nocella () (University of Bologna)
Lionel Hubbard () (University of Newcastle)
Riccardo Scarpa () (University of Waikato)

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Abstract

Increasing animal welfare standards requires changes along the supply chain which involve several stakeholders: scientists, farmers and people involved in transportation and slaughtering. The majority of researchers agree that compliance with these standards increases costs along the livestock value chain, especially for monitoring and certifying animal-friendly products. Knowledge of consumer willingness to pay (WTP) in such a decision context is paramount to understanding the magnitude of market incentives necessary to compensate all involved stakeholders. The market outcome of certification programs is dependent on consumer trust. Particularly, there is a need to understand to what extent consumers believe that stakeholders operating in the animal-friendly supply chain will respect certification standards. We examine these issues using a contingent valuation survey administered in five economically dominant EU countries. The implied WTP estimates are found to be sensitive to robust measures of consumer trust for certified animal-friendly products. Significant differences across countries are discussed.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0709.pdf
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Publisher Info
Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 07/09.

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Length: 25 pages
Date of creation: 28 May 2007
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Handle: RePEc:wai:econwp:07/09

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Related research
Keywords: Animal welfare Certification Consumer trust Contingent Valuation Willingness to Pay Budget approach

Find related papers by JEL classification:
Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models

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