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Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes

Author

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  • Jean-Sauveur Ay

    (Université Bourgogne Franche Comté)

  • Raja Chakir

    (Université Paris-Saclay)

  • Stephan Marette

    (Université Paris-Saclay)

Abstract

This paper investigates how the residents of a French wine-producing region value the attributes of wine. We elicit the willingness-to-pay (WTP) for organic/non-organic and local/non-local wines with increasing levels of information on the impact of agricultural practices at both global and local scales. The analysis shows that there is a significant organic premium associated with both local and non-local wines. This organic premium significantly increases with information and significantly decreases with the distance between the consumer’s home and the vineyard. Based on the econometric predictions of the WTP, we show that a per-unit tax on non-organic wines or a standard imposing organic practices increases welfare through the internalization of the attributes revealed by the experiment.

Suggested Citation

  • Jean-Sauveur Ay & Raja Chakir & Stephan Marette, 2017. "Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 997-1019, December.
    • Handle: RePEc:kap:enreec:v:68:y:2017:i:4:d:10.1007_s10640-016-0057-8
    DOI: 10.1007/s10640-016-0057-8
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    Cited by:

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    2. S. Marette & L. Nabec & F. Durieux, 2019. "Improving Nutritional Quality of Consumers’ Food Purchases With Traffic-Lights Labels: An Experimental Analysis," Journal of Consumer Policy, Springer, vol. 42(3), pages 377-395, September.
    3. Jean‐Sauveur Ay, 2021. "The Informational Content of Geographical Indications," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 523-542, March.
    4. Orset, Caroline, 2021. "Is information a good policy instrument to influence the energy behaviour of households?," Energy Economics, Elsevier, vol. 102(C).
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    6. Stéphan Marette, 2022. "Open questions about local food," Review of Agricultural, Food and Environmental Studies, Springer, vol. 103(1), pages 91-96, March.
    7. András István Kun & Marietta Kiss, 2021. "On the Mechanics of the Organic Label Effect: How Does Organic Labeling Change Consumer Evaluation of Food Products?," Sustainability, MDPI, vol. 13(3), pages 1-25, January.

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