Consumer Impact of Animal Welfare Regulation in the California Poultry Industry
This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumersâ€™ 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.
Volume (Year): 35 (2010)
Issue (Month): 3 (December)
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- Laura Mørch Andersen, 2011.
"Animal Welfare and Eggs – Cheap Talk or Money on the Counter?,"
Journal of Agricultural Economics,
Wiley Blackwell, vol. 62(3), pages 565-584, 09.
- 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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