IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v178y2020ics0308521x19304093.html
   My bibliography  Save this article

Impact of delivering ‘green’ dairy products on farm in New Zealand

Author

Listed:
  • Yang, Wei
  • Rennie, Grant
  • Ledgard, Stewart
  • Mercer, Geoff
  • Lucci, Gina

Abstract

There has been an increasing demand for livestock products with credence attributes (CAs), such as environmental sustainability and high animal welfare standards. Although most livestock product CAs are strongly related to farm-level production processes, rarely have studies explored the issue from an on-farm perspective. Therefore, this paper aims to explore whether consumers' willingness-to-pay (WTP) a price premium could incentivise dairy farmers to deliver products with CAs in New Zealand. We first employed a meta-regression analysis to estimate WTP for CAs of dairy products, and then incorporated the WTP estimates into farm system models to estimate the economic and environmental (nitrogen and GHG losses) impacts for the farms. Data for the meta-regression models were sourced from a literature survey yielding 32 studies estimating WTP for CAs of dairy products. The results showed that price premium ranged from 5.3% to 47.5% for environmentally-friendly dairy products. Farm system (FARMAX), farm environmental (OVERSEER) and life cycle assessment (LCA) models were used to model the farm system changes required to deliver ‘green’ dairy by using data for the average Waikato dairy farm. The results showed that the economic and environmental outcomes varied over the predicted range in WTP as well as for different farm system scenarios. Findings of the study could help inform NZ farmers as to how to adjust their farm systems in response to market signals and thereby potentially gain a price premium.

Suggested Citation

  • Yang, Wei & Rennie, Grant & Ledgard, Stewart & Mercer, Geoff & Lucci, Gina, 2020. "Impact of delivering ‘green’ dairy products on farm in New Zealand," Agricultural Systems, Elsevier, vol. 178(C).
    • Handle: RePEc:eee:agisys:v:178:y:2020:i:c:s0308521x19304093
    DOI: 10.1016/j.agsy.2019.102747
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X19304093
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agsy.2019.102747?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Raymond J. G. M. Florax & Chiara M. Travisi & Peter Nijkamp, 2005. "A meta-analysis of the willingness to pay for reductions in pesticide risk exposure," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(4), pages 441-467, December.
    2. P. A. Kuperis & M. M. Veeman & W. L. Adamowicz, 1999. "Consumer's Responses to the Potential Use of Bovine Somatotrophin in Canadian Dairy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(2), pages 151-163, July.
    3. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, December.
    4. Richardson, Leslie & Loomis, John, 2009. "The total economic value of threatened, endangered and rare species: An updated meta-analysis," Ecological Economics, Elsevier, vol. 68(5), pages 1535-1548, March.
    5. Yang, W. & Renwich, A., 2018. "Consumer Willingness to Pay Price Premium for Credence Attributes of Livestock Products A Meta-Analysis method," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277320, International Association of Agricultural Economists.
    6. Kehlbacher, A. & Bennett, R. & Balcombe, K., 2012. "Measuring the consumer benefits of improving farm animal welfare to inform welfare labelling," Food Policy, Elsevier, vol. 37(6), pages 627-633.
    7. Wim Verbeke, 2005. "Agriculture and the food industry in the information age," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 347-368, September.
    8. Smith, V Kerry & Huang, Ju-Chin, 1995. "Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 209-227, February.
    9. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    10. T.D. Stanley & Hristos Doucouliagos & Margaret Giles & Jost H. Heckemeyer & Robert J. Johnston & Patrice Laroche & Jon P. Nelson & Martin Paldam & Jacques Poot & Geoff Pugh & Randall S. Rosenberger & , 2013. "Meta-Analysis Of Economics Research Reporting Guidelines," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 390-394, April.
    11. Cicia, Gianni & Colantuoni, Francesca, 2010. "Willingness to Pay for Traceable Meat Attributes: A Meta-analysis," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(3), pages 1-12, October.
    12. White, Robin R. & Brady, Michael, 2014. "Can consumers’ willingness to pay incentivize adoption of environmental impact reducing technologies in meat animal production?," Food Policy, Elsevier, vol. 49(P1), pages 41-49.
    13. T. D. Stanley & Stephen B. Jarrell, 2005. "Meta‐Regression Analysis: A Quantitative Method of Literature Surveys," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 299-308, July.
    14. Danny Campbell & Edel Doherty, 2013. "Combining discrete and continuous mixing distributions to identify niche markets for food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 287-312, March.
    15. Viechtbauer, Wolfgang, 2010. "Conducting Meta-Analyses in R with the metafor Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 36(i03).
    16. Loomis, John B. & White, Douglas S., 1996. "Economic benefits of rare and endangered species: summary and meta-analysis," Ecological Economics, Elsevier, vol. 18(3), pages 197-206, September.
    17. Caswell, Julie A., 1998. "Valuing the benefits and costs of improved food safety and nutrition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), pages 1-16.
    18. Calista Cheung, 2013. "Policies to support sustainable long-term growth in New Zealand," OECD Economics Department Working Papers 1076, OECD Publishing.
    19. Teresa Del Giudice & Carla Cavallo & Francesco Caracciolo & Gianni Cicia, 2015. "What attributes of extra virgin olive oil are really important for consumers: a meta-analysis of consumers’ stated preferences," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-15, December.
    20. Olynk, Nicole J. & Tonsor, Glynn T. & Wolf, Christopher A., 2010. "Verifying Credence Attributes in Livestock Production," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(3), pages 1-14, August.
    21. T.D. Stanley & Hristos Doucouliagos & Margaret Giles & Jost Heckemeyer & Robert Johnston & Patrice Laroche & Jon Nelson & Martin Paldam & Jacques Poot & Geoff Pugh & Randall Rosenberger & Katja Rost, 2013. "Meta-analysis of economics research reporting guidelines," Post-Print hal-02137661, HAL.
    22. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    23. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
    24. Li, Xiaogu & Jensen, Kimberly L. & Clark, Christopher D. & Lambert, Dayton M., 2016. "Consumer willingness to pay for beef grown using climate friendly production practices," Food Policy, Elsevier, vol. 64(C), pages 93-106.
    25. Wei Yang & Alan Renwick, 2019. "Consumer Willingness to Pay Price Premiums for Credence Attributes of Livestock Products – A Meta‐Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 618-639, September.
    26. Van Houtven, George & Powers, John & Pattanayak, Subhrendu K., 2007. "Valuing water quality improvements in the United States using meta-analysis: Is the glass half-full or half-empty for national policy analysis?," Resource and Energy Economics, Elsevier, vol. 29(3), pages 206-228, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karen Bayne & Alan Renwick, 2021. "Beyond Sustainable Intensification: Transitioning Primary Sectors through Reconfiguring Land-Use," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    2. Theresa Rubhara & James Gaffey & Gavin Hunt & Fionnuala Murphy & Kevin O’Connor & Enda Buckley & Luis Alejandro Vergara, 2024. "A Business Case for Climate Neutrality in Pasture-Based Dairy Production Systems in Ireland: Evidence from Farm Zero C," Sustainability, MDPI, vol. 16(3), pages 1-18, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, W. & Renwich, A., 2018. "Consumer Willingness to Pay Price Premium for Credence Attributes of Livestock Products A Meta-Analysis method," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277320, International Association of Agricultural Economists.
    2. Branger, Frédéric & Quirion, Philippe, 2014. "Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies," Ecological Economics, Elsevier, vol. 99(C), pages 29-39.
    3. Subroy, Vandana & Gunawardena, Asha & Polyakov, Maksym & Pandit, Ram & Pannell, David J., 2019. "The worth of wildlife: A meta-analysis of global non-market values of threatened species," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    4. Cai, Zhen & Aguilar, Francisco X., 2013. "Meta-analysis of consumer's willingness-to-pay premiums for certified wood products," Journal of Forest Economics, Elsevier, vol. 19(1), pages 15-31.
    5. Abbie A. Rogers & Fiona L. Dempster & Jacob I. Hawkins & Robert J. Johnston & Peter C. Boxall & John Rolfe & Marit E. Kragt & Michael P. Burton & David J. Pannell, 2019. "Valuing non-market economic impacts from natural hazards," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(2), pages 1131-1161, November.
    6. Pettinotti, Laetitia & de Ayala, Amaia & Ojea, Elena, 2018. "Benefits From Water Related Ecosystem Services in Africa and Climate Change," Ecological Economics, Elsevier, vol. 149(C), pages 294-305.
    7. Fitzpatrick, Luke & Parmeter, Christopher F. & Agar, Juan, 2017. "Threshold Effects in Meta-Analyses With Application to Benefit Transfer for Coral Reef Valuation," Ecological Economics, Elsevier, vol. 133(C), pages 74-85.
    8. Fan, Yubing & Wang, Chenggang & Nan, Zhibiao, 2018. "Determining water use efficiency of wheat and cotton: A meta-regression analysis," Agricultural Water Management, Elsevier, vol. 199(C), pages 48-60.
    9. Fan, Yubing & Wang, Chenggang & Nan, Zhibiao, 2016. "Determining water use efficiency for wheat and cotton: A meta-regression analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236059, Agricultural and Applied Economics Association.
    10. Ngoulma, Jeannot, 2015. "Consumers’ willingness to pay for dairy products: what the studies say? A Meta-Analysis," MPRA Paper 65250, University Library of Munich, Germany.
    11. Bachmann, Federico & Liseras, Natacha & Graña, Fernando Manuel, 2021. "Innovative performance and firm size: a meta-regression analysis," Nülan. Deposited Documents 3614, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    12. Sebri, Maamar, 2015. "Use renewables to be cleaner: Meta-analysis of the renewable energy consumption–economic growth nexus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 657-665.
    13. Markus Hang & Jerome Geyer‐Klingeberg & Andreas Rathgeber & Stefan Stöckl, 2018. "Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance," Journal of Industrial Ecology, Yale University, vol. 22(4), pages 720-744, August.
    14. Condon, Nicole & Klemick, Heather & Wolverton, Ann, 2015. "Impacts of ethanol policy on corn prices: A review and meta-analysis of recent evidence," Food Policy, Elsevier, vol. 51(C), pages 63-73.
    15. Labandeira, Xavier & Labeaga, José M. & Linares, Pedro & López-Otero, Xiral, 2020. "The impacts of energy efficiency policies: Meta-analysis," Energy Policy, Elsevier, vol. 147(C).
    16. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
    17. Havranek, Tomas & Kokes, Ondrej, 2015. "Income elasticity of gasoline demand: A meta-analysis," Energy Economics, Elsevier, vol. 47(C), pages 77-86.
    18. Ojea, Elena & Loureiro, Maria L., 2011. "Identifying the scope effect on a meta-analysis of biodiversity valuation studies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 706-724, September.
    19. Hjerpe, Evan & Hussain, Anwar & Phillips, Spencer, 2015. "Valuing type and scope of ecosystem conservation: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 21(1), pages 32-50.
    20. Kovacs, Kent & West, Grant & Nowak, David J. & Haight, Robert G., 2022. "Tree cover and property values in the United States: A national meta-analysis," Ecological Economics, Elsevier, vol. 197(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:178:y:2020:i:c:s0308521x19304093. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.