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Econometric analysis of noncompliance with organic farming standards in Switzerland

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  • Christian Lippert
  • Alexander Zorn
  • Stephan Dabbert

Abstract

Applying the economics of crime theory, we model the decision of an opportunistic and/or careless organic farmer and derive hypotheses to explain noncompliance. Where empirical data are available, hypotheses are tested. We use data for the years 2007 through 2009 of organic farms certified by Bio Suisse. Imposed sanctions are used as a proxy variable for noncompliance and farm characteristics as explanatory variables. Random effects logit models show that processing activities and livestock diversity significantly increase a farm's sanction probability. Past noncompliances also indicate a higher present sanction probability. Finally, we discuss some methodological issues and suggest a way to organize risk-based inspections more effectively.

Suggested Citation

  • Christian Lippert & Alexander Zorn & Stephan Dabbert, 2014. "Econometric analysis of noncompliance with organic farming standards in Switzerland," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 313-325, May.
    • Handle: RePEc:bla:agecon:v:45:y:2014:i:3:p:313-325
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    File URL: http://hdl.handle.net/10.1111/agec.12067
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    References listed on IDEAS

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    1. Herzfeld, Thomas & Jongeneel, Roel, 2012. "Why do farmers behave as they do? Understanding compliance with rural, agricultural, and food attribute standards," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(1), pages 250-260.
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    3. Entorf, Horst & Antony, Jürgen, 2002. "Zur Gültigkeit der Abschreckung im Sinne der ökonomischen Theorie der Kriminalität: Grundzüge einer Meta-Studie," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 18197, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Lippert, Christian, 2002. "Zur Ökonomik der Kontrollmaßnahmen bei Lebensmitteln und Futtermitteln," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(03), pages 1-14.
    5. McCluskey, Jill J., 2000. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 1-9, April.
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    1. Gambelli, Danilo & Solfanelli, Francesco & Zanoli, Raffaele & Zorn, Alexander & Lippert, Christian & Dabbert, Stephan, 2014. "Non-compliance in organic farming: A cross-country comparison of Italy and Germany," Food Policy, Elsevier, vol. 49(P2), pages 449-458.
    2. Bimbo, Francesco & Bonanno, Alessandro & Viscecchia, Rosaria, 2019. "An empirical framework to study food labelling fraud: an application to the Italian extra-virgin olive oil market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.
    3. Peter D. Lunn & Seán Lyons & Martin Murphy, 2020. "Predicting farms’ noncompliance with regulations on nitrate pollution," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(13), pages 2313-2333, November.
    4. Morgan, Stephen N. & Mason, Nicole M. & Shupp, Robert S., 2016. "Do Open Comment Processes Increase Regulatory Compliance? Evidence from a Public Goods Experiment," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235719, Agricultural and Applied Economics Association.
    5. Morgan, S. & Mason, N. & Shupp, R., 2018. "Stakeholder Comments, Contributions, and Compliance: Evidence from a Public Goods Experiment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277122, International Association of Agricultural Economists.
    6. Dabbert, Stephan & Lippert, Christian & Zorn, Alexander, 2014. "Introduction to the special section on organic certification systems: Policy issues and research topics," Food Policy, Elsevier, vol. 49(P2), pages 425-428.
    7. Ehmke, Mariah Dolsen & Bonanno, Alessandro & Boys, Kathryn & Smith, Trenton G., 2019. "Food fraud: economic insights into the dark side of incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.
    8. Zorn, Alexander & Lippert, Christian & Dabbert, Stephan, 2014. "Organic controls in Germany – is there a need to harmonize?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182837, European Association of Agricultural Economists.

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