IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/31144.html
   My bibliography  Save this article

The Price Premium for Organic Babyfood: A Hedonic Analysis

Author

Listed:
  • Maguire, Kelly B.
  • Owens, Nicole N.
  • Simon, Nathalie B.

Abstract

The price premium associated with organic babyfood is estimated by applying a hedonic model to price and characteristic data for babyfood products collected in two cities: Raleigh, North Carolina, and San Jose, California. The price per ounce of babyfood is modeled as a function of a number of babyfood and store characteristics. The estimated organic price premium is generally equal to 3 cents to 4 cents per ounce. To the extent this premium reflects consumer willingness to pay to reduce pesticide exposures, it could be used to infer values for reduced dietary exposures to pesticide residues for babies.

Suggested Citation

  • Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), pages 1-18, April.
    • Handle: RePEc:ags:jlaare:31144
    DOI: 10.22004/ag.econ.31144
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31144/files/29010132.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.31144?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thompson, Gary D. & Glaser, Lewrene K., 2001. "National Demand For Organic And Conventional Baby Food," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36139, Western Agricultural Economics Association.
    2. Feenstra, Robert C, 1995. "Exact Hedonic Price Indexes," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 634-653, November.
    3. Harris, J. Michael, 1997. "Consumers Pay a Premium for Organic Baby Foods," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 20(2), pages 1-4.
    4. Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 801-811.
    5. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    6. Tsu‐Tan Fu & Jin‐Tan Liu & James K. Hammitt, 1999. "Consumer Willingness to Pay for Low‐Pesticide Fresh Produce in Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 220-233, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Toshihiro Okubo, 2013. "Energy-saving regulations and commodity prices," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(1), pages 93-132, January.
    2. Kelly B. Maguire & Nicole Owens & Nathalie B. Simon, 2002. "Willingness to pay to Reduce a Child’s Pesticide Exposure: Evidence from the Baby Food Market," NCEE Working Paper Series 200203, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2002.
    3. Maguire, Kelly B. & Owens, Nicole & Simon, Nathalie B., 2002. "Willingness To Pay To Reduce A Child’S Pesticide Exposure: Evidence From The Baby Food Market," National Center for Environmental Economics-NCEE Working Papers 280796, United States Environmental Protection Agency (EPA).
    4. Yuting Liu & Abdoul G. Sam, 2022. "The organic premium of baby food based on market segments," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 533-556, July.
    5. Wong, Maisy, 2010. "The Relationship between Marginal Willingness-to-Pay in the Hedonic and Discrete Choice Models," MPRA Paper 51218, University Library of Munich, Germany.
    6. Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 801-811.
    7. Christopher R. Knittel & Victor Stango, 2003. "Compatibility and pricing with indirect network effects: evidence from ATMs," Working Paper Series WP-03-33, Federal Reserve Bank of Chicago.
    8. Robert C. Feenstra & Christopher R. Knittel, 2009. "Reassessing the US Quality Adjustment to Computer Prices: The Role of Durability and Changing Software," NBER Chapters, in: Price Index Concepts and Measurement, pages 129-160, National Bureau of Economic Research, Inc.
    9. Patrick Bajari & C. Lanier Benkard, 2005. "Demand Estimation with Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1239-1276, December.
    10. David Prentice & Xiangkang Yin, 2000. "Measuring Quality-Adjusted Inflation Rates for a Heterogeneous Oligopoly," Working Papers 2000.06, School of Economics, La Trobe University.
    11. Henning Ahnert & Geoff Kenny, 2004. "Quality adjustment of European price statistics and the role for hedonics," Occasional Paper Series 15, European Central Bank.
    12. Frank F. Limehouse & Peter C. Melvin & Robert E. McCormick, 2010. "The Demand for Environmental Quality: An Application of Hedonic Pricing in Golf," Journal of Sports Economics, , vol. 11(3), pages 261-286, June.
    13. David Boto-García & Veronica Leoni, 2023. "The Economic Value of Coastal Amenities: Evidence from Beach Capitalization Effects in Peer-to-Peer Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 529-557, February.
    14. Christopher R. Knittel & Victor Stango, 2003. "Compatibility and pricing with indirect network effects: evidence from ATMs," Working Paper Series WP-03-33, Federal Reserve Bank of Chicago.
    15. Victor Ginsburgh & Jianping Mei & Michael Moses, 2006. "On the computation of art indices in art," ULB Institutional Repository 2013/7290, ULB -- Universite Libre de Bruxelles.
    16. Rimal, Arbindra & Perkins, Tommy & Paschal, Joe C., 2003. "Relationship Between Attributes Of Beef Cattle Raised Using Ultrasound Technology And Prices Received At The Packers: A Hedonic Price Analysis," 2003 Annual meeting, July 27-30, Montreal, Canada 22090, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. W. Erwin Diewert, 2003. "Hedonic Regressions. A Consumer Theory Approach," NBER Chapters, in: Scanner Data and Price Indexes, pages 317-348, National Bureau of Economic Research, Inc.
    18. Lars Gårn Hansen & Laura Mørch Andersen, 2013. "Does Organic Crowding Out Influence Organic Food Demand? – evidence from a Danish micro panel," IFRO Working Paper 2013/2, University of Copenhagen, Department of Food and Resource Economics.
    19. Mick Silver & Saeed Heravi, 2003. "The Measurement of Quality-Adjusted Price Changes," NBER Chapters, in: Scanner Data and Price Indexes, pages 277-316, National Bureau of Economic Research, Inc.
    20. Gupta, Abhay, 2007. "Measuring Quality Change due to Technological Externality in Multi-Feature Service Bundles," MPRA Paper 9284, University Library of Munich, Germany.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:31144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.