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Certified and Stable? Price and Yield Volatility Under Voluntary Sustainability Standards in Peru

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  • Eva Boonaert
  • Eva‐Marie Meemken
  • Miet Maertens

Abstract

Prior research analyzes the economic effects of Voluntary Sustainability Standards (VSS)—such as Fairtrade, Organic, and GlobalGAP—but little is known about the stability of these effects over time. Using a nationally representative farm survey of Peru (2015–2019), this study analyzes whether VSS certification is associated with reduced inter‐annual price and yield volatility. Applying pooled OLS, matching, and internal instruments, we find that certification is associated with 27% lower price volatility and 17% lower yield volatility, particularly benefiting family farms, translating into an 81% reduction in their net farm revenue volatility. The results highlight VSS' potential to enhance revenue stability.

Suggested Citation

  • Eva Boonaert & Eva‐Marie Meemken & Miet Maertens, 2026. "Certified and Stable? Price and Yield Volatility Under Voluntary Sustainability Standards in Peru," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 48(4), pages 1101-1118, September.
    • Handle: RePEc:wly:apecpp:v:48:y:2026:i:4:p:1101-1118
    DOI: 10.1002/aepp.70079
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