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Eco-labelled food products: what are consumers paying for?

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  • Douadia Bougherara
  • Pierre Combris

Abstract

The paper investigates whether the premium consumers are willing to pay for an eco-labelled product is driven by selfish or altruistic motives. Using an incentive-compatible experiment with both a within- and a between-subject design, we study the effect on this premium of information stating that eco-friendly products do not necessarily lead to higher private benefits. We find that this information does not affect buying prices in the within-subject experiment. This suggests that consumers' willingness to pay for the eco-labelled product does not derive from perceived higher taste or safety attributes but from other motives. These results are confirmed in the between-subject design where we find that information affects buying prices for the eco-friendly product but also for the control product in the between-subject experiment. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Douadia Bougherara & Pierre Combris, 2009. "Eco-labelled food products: what are consumers paying for?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 321-341, September.
    • Handle: RePEc:oup:erevae:v:36:y:2009:i:3:p:321-341
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    File URL: http://hdl.handle.net/10.1093/erae/jbp023
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