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Willingness-to-pay in terms of price: an application to organic beef during and after the “mad cow” crisis

Author

Listed:
  • Alessandro Corsi

    (Dept. of Economics, University of Torino, and CHILD)

  • Silvia Novelli

    (Research Centre for Rural Development of Hilly Areas, University of Torino)

Abstract

This paper aims at assessing consumers’ attitudes and willingness to pay for organic beef, an obvious alternative to regular beef in terms of safety, both immediately and at a longer term after the BSE crisis. It is based on two random telephone surveys in an Italian region, the first one conducted in 2001 (few months after the BSE crisis) and the second one in 2003. The analysis is based on an innovative methodology of contingent valuation, keeping into account the possibility for consumers to decide the quantity of their purchase when a price is proposed. The results show that though the effect of the BSE crisis weakened along with time distance, it left some permanent signs in consumers’ behaviour. The main conclusion is that the demand for organic beef reduced, but that in the meantime it became more inelastic.

Suggested Citation

  • Alessandro Corsi & Silvia Novelli, 2011. "Willingness-to-pay in terms of price: an application to organic beef during and after the “mad cow” crisis," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(1), pages 25-46.
  • Handle: RePEc:rae:jourae:v:92:y:2011:i:1:p:25-46
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    References listed on IDEAS

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    Cited by:

    1. repec:ags:frraes:199907 is not listed on IDEAS
    2. Frédéric Keck, 2012. "Compte rendu d'ouvrage - Céline Granjou, Marc Barbier (2010) Métamorphoses de l'expertise : Précaution et maladies à prions," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(1), pages 101-104.

    More about this item

    Keywords

    BSE; organic beef; willingness to pay; contingent valuation;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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