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Farm Animal Welfare - Testing for Market Failure

  • Carlsson, Fredrik
  • Grykblom, Peter
  • Lagerkvist, Carl Johan

Many consumers are concerned with animal welfare in the conventional production of farm livestock. This concern can be related both to their own and others’ consumption. In the latter case, there is a negative externality from consumption. We suggest a survey design that enables us to test for a market failure in farm livestock production. Applying this to the question of battery cages in egg production, we cannot show that a market failure exists. The policy can be extended to general discussion of how potential market failures for all kind of farm livestock should be managed.

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File URL: http://purl.umn.edu/6687
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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:6687
Contact details of provider: Web page: http://www.saea.org/jaae/jaae.htm

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  1. Jensen, Helen H. & Yen, Steven & Wang, Qingbin, 1996. "Cholesterol Information and Egg Consumption in the U.S.: A Nonnormal and Heteroscedastic Double Hurdle Model," Staff General Research Papers 1056, Iowa State University, Department of Economics.
  2. Alpizar, Francisco & Carlsson, Fredrik & Martinsson, Peter, 2001. "Using Choice Experiments for Non-Market Valuation," Working Papers in Economics 52, University of Gothenburg, Department of Economics.
  3. Bennett, R. M., 1997. "Farm animal welfare and food policy," Food Policy, Elsevier, vol. 22(4), pages 281-288, August.
  4. Jayson Lusk & Ted Schroeder, 2004. "Are choice experiments incentive compatible? A test with quality differentiated beef steaks," Artefactual Field Experiments 00096, The Field Experiments Website.
  5. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March.
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  7. Richard Bennett & Douglas Larson, 1996. "Contingent Valuation Of The Perceived Benefits Of Farm Animal Welfare Legislation: An Exploratory Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 224-235.
  8. Kevin J. Boyle & P. Joan Poor & Laura O. Taylor, 1999. "Estimating the Demand for Protecting Freshwater Lakes from Eutrophication," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1118-1122.
  9. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  10. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  11. Hamilton, Stephen F. & Sunding, David L. & Zilberman, David, 2003. "Public goods and the value of product quality regulations: the case of food safety," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 799-817, March.
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  13. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  14. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
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  16. Richard Bennett, 1995. "The Value Of Farm Animal Welfare," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 46-60.
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