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The Price Premium for Organic Babyfood: A Hedonic Analysis

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

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.

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File URL: http://purl.umn.edu/31144
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 29 (2004)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:jlaare:31144
Contact details of provider: Web page: http://waeaonline.org/

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  1. Nimon, W. & Beghin, John C., 2008. "Are Eco-Labels Valuable? Evidence from the Apparel Industry," Staff General Research Papers 12741, Iowa State University, Department of Economics.
  2. 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.
  3. 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.
  4. Robert C. Feenstra, 1995. "Exact Hedonic Price Indexes," NBER Working Papers 5061, National Bureau of Economic Research, Inc.
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