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Willingness to Pay for Environmental Practices: Implications for Eco-Labeling

  • Wanki Moon
  • Wojciech J. Florkowski
  • Bernhard Brückner
  • Ilona Schonhof
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    Consumer survey data, collected in former West and East Berlin after the unification of Germany are used to address the issue of willingness to pay (WTP) for foods produced with techniques consistent with environmental stewardship. Results show differences in the WTP between residents of the two former German states attributed to area of residence. Residents of eastern city districts were generally less willing to pay a premium for foods produced with environmental- friendly methods which suggests that marketing of such foods will be more successful in western districts, unless educational efforts can be used to bridge the gap in the stated WTP.

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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 78 (2002)
    Issue (Month): 1 ()
    Pages: 88-102

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    Handle: RePEc:uwp:landec:v:78:y:2002:i:1:p:88-102
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    1. Cathy R. Wessells & Robert J. Johnston & Holger Donath, 1999. "Assessing Consumer Preferences for Ecolabeled Seafood: The Influence of Species, Certifier, and Household Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1084-1089.
    2. Tsu-Tan Fu & Jin-Tan Liu & James K. Hammitt, 1999. "Consumer Willingness to Pay for Low-Pesticide Fresh Produce in Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 220-233.
    3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    4. Feather, Peter & Hellerstein, Daniel & Hansen, LeRoy T., 1999. "Economic Valuation of Environmental Benefits and the Targeting of Conservation Programs: The Case of the CRP," Agricultural Economics Reports 34027, United States Department of Agriculture, Economic Research Service.
    5. Nimon, R. Wesley & Beghin, John C., 1998. "Are Eco-Labels Valuable? Evidence From The Apparel Industry," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21016, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Ravenswaay, Eileen O. van & Hoehn, John P., 1991. "Contingent Valuation and Food Safety: The Case of Pesticide Residues in Food," Staff Papers 201042, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
    8. Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), July.
    9. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
    10. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    11. Balderjahn, Ingo, 1988. "Personality variables and environmental attitudes as predictors of ecologically responsible consumption patterns," Journal of Business Research, Elsevier, vol. 17(1), pages 51-56, August.
    12. Baker, Gregory A. & Crosbie, Peter J., 1993. "Measuring Food Safety Preferences: Identifying Consumer Segments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December.
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