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Pro-environmental behavior in Costa Rica: A case study on price premiums for coffee certification

Author

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  • Valenciano-Salazar, Jorge A.

  • André, Francisco J.

  • Soliño, Mario

Abstract

This study examines the willingness to pay (WTP) of Costa Rican consumers for certified coffee. Two marketed coffee ecolabels (Fairtrade and Carbon Neutral) are considered, as well as non-marketed environmental certification (ISO 14001) to allow for comparison. A discrete choice experiment reveals that consumers are willing to pay a significant price premium for any of these three certifications. In a context where ensure equitable and sustainable conditions in the production of agricultural goods and taking action to combat climate change by reducing greenhouse gases is imperative, our results show that certified coffee, particularly fair trade and carbon neutral coffee, receive price premiums from Costa Rican consumers. Thus, eco-labels can serve as a means of promoting more sustainable practices within the coffee value chain.

Suggested Citation

  • Valenciano-Salazar, Jorge A. & André, Francisco J. & Soliño, Mario, 2025. "Pro-environmental behavior in Costa Rica: A case study on price premiums for coffee certification," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 34(2), pages 1-18.
    • Handle: RePEc:sdo:regaec:v:34:y:2025:i:2_8
    DOI: 10.15304/rge.34.2.10256
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    References listed on IDEAS

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    1. Madhu Khanna, 2001. "Non‐Mandatory Approaches to Environmental Protection," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 291-324, July.
    2. Christopher L. Gilbert, 2024. "The EU Deforestation Regulation," EuroChoices, The Agricultural Economics Society, vol. 23(3), pages 64-70, December.
    3. Galarraga, Ibon & Markandya, Anil, 2004. "Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07), pages 1-26.
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    More about this item

    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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