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Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom

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  • Galarraga, Ibon
  • Markandya, Anil

Abstract

The hedonic approach is used in this paper to estimate how much is paid for the fair trade/organic characteristic of the coffee in the British market. This information is later combined with the Quantity Based Demand System (QBDS) model -developed by the authors- and the Almost Ideal Demand System (AIDS) (Deaton and Muellbauer, 1980) to completely determine the demand function for different coffees. The QBDS model is easier to handle and less data demanding than the AIDS model in this study. Resumen El presente artículo se basa en la utilización del método hedónico para la estimación de la cantidad que se paga por la característica de "Orgánico/Comercio Justo" del café en el mercado británico. La información obtenida se combina después con el modelo Sistema de Demanda Basado en Cantidades (QBDS) - desarrollado por los autores- y el Sistema de Demanda Casi Ideal (AIDS) (Deaton and Muellbauer, 1980) para determinar por completo la función de demanda de los diferentes tipos de café. El modelo QBDS es más sencillo en su utilización y necesita de menos datos que el modelo AIDS. Palabras clave: sistemas de demanda, método hedónico, demanda de café, etiquetado

Suggested Citation

  • Galarraga, Ibon & Markandya, Anil, 2004. "Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07), pages 1-26.
    • Handle: RePEc:ags:earnsa:28732
    DOI: 10.22004/ag.econ.28732
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    References listed on IDEAS

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