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Consumer Impact of Animal Welfare Regulation in the California Poultry Industry

  • Allender, William J.
  • Richards, Timothy J.

This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger households and/or households with limited means are most likely to be affected. Furthermore, the implied welfare loss for consumers is approximately $106 million. Although consumers value cage-free eggs, higher production costs result in a net welfare loss to consumers. One implication of this finding is that a clear labeling practice may be a more efficient way to motivate animal welfare and non-cage systems.

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File URL: http://purl.umn.edu/97856
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 35 (2010)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:ags:jlaare:97856
Contact details of provider: Web page: http://waeaonline.org/

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  1. Laura Mørch Andersen, 2010. "Animal Welfare and Eggs – Cheap Talk or Money on the Counter?," IFRO Working Paper 2010/6, University of Copenhagen, Department of Food and Resource Economics, revised Apr 2011.
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