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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.

Suggested Citation

  • Carlsson, Fredrik & Grykblom, Peter & Lagerkvist, Carl Johan, 2007. "Farm Animal Welfare - Testing for Market Failure," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(01), April.
  • Handle: RePEc:ags:joaaec:6687

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    References listed on IDEAS

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    Cited by:

    1. Uehleke, Reinhard & Hüttel, Silke, 2016. "The Hypothetical Free-Rider Deficit In The Demand For Farm Animal Welfare Labeled Meat," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244866, German Association of Agricultural Economists (GEWISOLA).
    2. Bicknell, Kathryn, 2010. "Economic Considerations of Animal Welfare Policy," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 115718, New Zealand Agricultural and Resource Economics Society.
    3. Otieno, David & Ogutu, Sylvester, 2015. "Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212602, International Association of Agricultural Economists.
    4. Alphonce, Roselyne & Alfnes, Frode & Sharma, Amit, 2014. "Consumer vs. citizen willingness to pay for restaurant food safety," Food Policy, Elsevier, vol. 49(P1), pages 160-166.
    5. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2008. "Consumer Preferences for Animal Welfare Attributes: Case of Gestation Crates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6062, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Lu, Yiqing & Cranfield, John & Widowski, Tina, 2013. "Consumer Preference for Eggs from Enhanced Animal Welfare Production System: A Stated Choice Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150276, Agricultural and Applied Economics Association.
    7. Tonsor, Glynn T. & Wolf, Christopher A., 2011. "On mandatory labeling of animal welfare attributes," Food Policy, Elsevier, vol. 36(3), pages 430-437, June.

    More about this item


    animal welfare; choice experiments; market failure; Livestock Production/Industries; Marketing; D12; Q13; Q18;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • 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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