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A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?

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  • Deselnicu, Oana C.
  • Costanigro, Marco
  • Souza-Monteiro, Diogo M.
  • McFadden, Dawn Thilmany

Abstract

We conduct a meta-analysis of studies estimating price premiums for agricultural products differentiated by Geographical Indication (GI). Models accounting for differences across product characteristics (food categories) and institutions (PDO, PGI, trademarks) explain a large portion of the variance in estimated premiums. Specifically, GIs capture the highest percentage premium in markets for products with short supply chains and relatively low added value (e.g., agricultural commodities). The premium is lower for wine and olive oil, where alternative means of product differentiation (e.g., branding) exist. Controlling for product characteristics, GIs adopting stricter regulations (PDO) yield larger premiums than less regulated ones (PGI).

Suggested Citation

  • Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
  • Handle: RePEc:ags:jlaare:158285
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Dolgopolova, Irina & Teuber, Ramona, 2016. "Consumers’ Willingness-to-pay for Health-enhancing Attributes in Food Products: A Meta-analysis," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235390, Agricultural and Applied Economics Association.
    2. Balcombe, Kelvin & Bradley, Dylan & Fraser, Iain & Hussein, Mohamud, 2016. "Consumer preferences regarding country of origin for multiple meat products," Food Policy, Elsevier, vol. 64(C), pages 49-62.
    3. Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.
    4. Yu, Jianyu & Bouamra-Mechemache, Zohra & Zago, Angelo, 2016. "What’s in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names," 149th Seminar, October 27-28, 2016, Rennes, France 244897, European Association of Agricultural Economists.
    5. Ngoulma, Jeannot, 2015. "Consumers’ willingness to pay for dairy products: what the studies say? A Meta-Analysis," MPRA Paper 65250, University Library of Munich, Germany.
    6. Verena Otter & Bianca Prechtel & Ludwig Theuvsen, 2014. "The Country-of-Origin Effect for Chocolate made from Ecuadorian Cocoa: An Empirical Analysis of Consumer Perceptions," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 16(3), pages 43-60.
    7. Marion Desquilbet & Sylvette Monier-Dilhan, 2015. "Are geographical indications a worthy quality label? A framework with endogenous quality choice," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 42(1), pages 129-150.
    8. repec:eee:wdevel:v:98:y:2017:i:c:p:1-11 is not listed on IDEAS
    9. repec:spr:jknowl:v:8:y:2017:i:2:d:10.1007_s13132-016-0386-4 is not listed on IDEAS
    10. Adam, Brian D. & Holcomb, Rodney & Buser, Michael & Mayfield, Blayne & Thomas, Johnson & O’Bryan, Corliss A. & Crandall, Philip & Knipe, Dar & Knipe, Richard & Ricke, Steven C., 2016. "Enhancing Food Safety, Product Quality, and Value-Added in Food Supply Chains Using Whole-Chain Traceability," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(A).
    11. Hussein, Mohamud & Fraser, Iain & Costanigro, Marco, 2016. "Hedonic Analysis of Origin of Meat In The United Kingdom," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236353, Agricultural Economics Society.
    12. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," TSE Working Papers 12-335, Toulouse School of Economics (TSE).
    13. Forbes-Brown, Shelicia & Mcheels, Eric & Hobbs, Jill, 2015. "Signalling Origin: Consumer Willngness to Pay for Dairy Products with the "100% Canadian Milk" Label," 2015 Conference, August 9-14, 2015, Milan, Italy 211636, International Association of Agricultural Economists.
    14. repec:eee:wdevel:v:98:y:2017:i:c:p:12-24 is not listed on IDEAS
    15. Teresa Del Giudice & Carla Cavallo & Francesco Caracciolo & Gianni Cicia, 2015. "What attributes of extra virgin olive oil are really important for consumers: a meta-analysis of consumers’ stated preferences," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-15, December.
    16. Marco Costanigro & Oana Deselnicu & Dawn Thilmany McFadden, 2016. "Product differentiation via corporate social responsibility: consumer priorities and the mediating role of food labels," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 33(3), pages 597-609, September.

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