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Interaction Between Food Attributes in Markets: The Case of Environmental Labeling

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  • Grolleau, Gilles
  • Caswell, Julie A.

Abstract

Some consumers derive utility from using products produced with specific processes, such as environmentally friendly practices. Means of verifying these credence attributes, such as certification, are necessary for the market to function effectively. A substitute or complementary solution may exist when consumers perceive a relationship between a process attribute and other verifiable product attributes. We present a model where the level of search and experience attributes influences the likelihood of production of eco-friendly products. Our results suggest that the market success of eco-friendly food products requires a mix of environmental and other verifiable attributes that together signal credibility.

Suggested Citation

  • Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
  • Handle: RePEc:ags:jlaare:8636
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    References listed on IDEAS

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    Cited by:

    1. Ward, Clement E. & Lusk, Jayson L. & Dutton, Jennifer M., 2008. "Implicit Value of Retail Beef Product Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
    2. Nadia Cuffaro & Marina Di Giacinto, 2011. "High quality exports and consumers’ trust: a development perspective," Working Papers 2011-04, Universita' di Cassino, Dipartimento di Scienze Economiche.
    3. Banterle, Alessandro & Ricci, Elena Claire, 2013. "Does the Sustainability of Food Products Influence Consumer Choices? The Case of Italy," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(2).
    4. Bougherara, Douadia & Grolleau, Gilles & Mzoughi, Naoufel, 2009. "Buy local, pollute less: What drives households to join a community supported farm?," Ecological Economics, Elsevier, vol. 68(5), pages 1488-1495, March.
    5. Schroeter, Christiane & Nicholson, Charles F. & Meloy, Margaret G., 2016. "Consumer Valuation of Organic and Conventional Milk: Does Shelf Life Matter?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), November.
    6. Mohamed Akli Achabou & Adel Rink, 2014. "Barrières et motivations pour la consommation des produits de la mode éthique en France," Working Papers 2014-138, Department of Research, Ipag Business School.
    7. Costanigro, Marco & Deselnicu, Oana & Kroll, Stephan, 2012. "Truthful, Misguiding Labels: The Implications of Labeling Production Processes rather than their Outcomes," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124615, Agricultural and Applied Economics Association.
    8. Meyer-Höfer, Marie von & Spiller, Achim, 2015. ""Sustainability" a semi-globalisable concept for international food marketing: Consumer expectations regarding sustainable food," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202747, European Association of Agricultural Economists.
    9. von Meyer-Höfer, Marie & Spiller, Achim, 2014. "“Sustainability” a semi-globalisable concept for international food marketing - Consumer expectations regarding sustainable food – An explorative survey in industrialised and emerging countries," Discussion Papers 182513, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    10. Guzhen Zhou & Wuyang Hu & Wenchao Huang, 2016. "Are Consumers Willing to Pay More for Sustainable Products? A Study of Eco-Labeled Tuna Steak," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-18, May.
    11. von Meyer-Höfer, Marie & von der Wense, Vera & Spiller, Achim, 2013. "Characterising convinced sustainable food consumers," Discussion Papers 161887, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    12. Grolleau, Gilles & Ibanez, Lisette & Mzoughi, Naoufel, 2009. "Too much of a good thing? Why altruism can harm the environment?," Ecological Economics, Elsevier, vol. 68(7), pages 2145-2149, May.
    13. Mohamed Akli Achabou, 2014. "Brand influence on consumer preference for environmental labels," Working Papers 2014-139, Department of Research, Ipag Business School.
    14. Kubitzki, Sabine & Krischik-Bautz, Stephanie, 2011. "Weiß der Verbraucher wirklich, welche Qualität er kauft? Eine Studie zur Qualitätserwartung an Prüfzeichen," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 60(1).
    15. Janssen, Meike & Hamm, Ulrich, 2014. "Governmental and private certification labels for organic food: Consumer attitudes and preferences in Germany," Food Policy, Elsevier, vol. 49(P2), pages 437-448.
    16. Schubert, Renate & Blasch, Julia, 2010. "Sustainability standards for bioenergy--A means to reduce climate change risks?," Energy Policy, Elsevier, vol. 38(6), pages 2797-2805, June.
    17. Prosperi, Maurizio & Viscecchia, Rosaria, 2007. "Indirect Effects of Eco-labelling of agricultural products on Natural Resources," 105th Seminar, March 8-10, 2007, Bologna, Italy 7868, European Association of Agricultural Economists.
    18. Meyer-Höfer, Marie von & Nitzko, Sina & Spiller, Achim, 2013. "Expectation Gaps and Halo-Effects in Organic Food Positioning: Characteristics of Organic Food from a Consumer’s Point of View," Discussion Papers 160420, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    19. Sidali, Katia Laura & Spiller, Achim & von Meyer-Hofer, Marie, 2016. "Consumer Expectations Regarding Sustainable Food: Insights from Developed and Emerging Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(3).
    20. Cristiana Peano & Vincenzo Girgenti & Claudio Baudino & Nicole Roberta Giuggioli, 2017. "Blueberry Supply Chain in Italy: Management, Innovation and Sustainability," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-17, February.

    More about this item

    Keywords

    environmental labeling; food attributes; food marketing; quality perception; Food Consumption/Nutrition/Food Safety;

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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