Rising interest in credence qualities in agricultural products and the role for government
Consumers are increasingly interested in the impacts of agricultural production on the environment, animals, workers, health etc – all examples of credence attributes. While governments set and enforce minimum requirements regarding these attributes, roles for government in markets for products with additional levels of these attributes (‘ecolabelled’ products) are less clearly defined and understood. This presents a risk that government actions will create distortions in markets for ecolabelled and non-ecolabelled products. This is especially likely if policy is based on pursuing environmental and other outcomes through encouraging ecolabelling. There are some areas, it is argued, where government actions could increase the efficiency of markets for goods with additional credence qualities. This is because of the impacts of information asymmetries between producers and consumers. However, firms have developed many ways to signal the credibility of their claims, and any government intervention must be cognisant of this. The paper reports on a continuing body of work within the Victorian Department of Primary Industries aimed at identifying roles for government in ecolabelling, and progressing their implementation.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wachenheim, Cheryl J. & Vanwechel, Tamara, 2004. "The Influence Of Environmental-Impact Information On Consumer Willingness To Pay For Products Labeled As Free Of Genetically Modified Ingredients," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(02), July.
- Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
- Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2002.
"Do consumers not care about biotech foods or do they just not read the labels?,"
Elsevier, vol. 75(1), pages 47-53, March.
- Noussair, C. & Robin, S. & Ruffieux, B., 2001. "Do Consumers Not Care about Biotech Foods or Do They Just Not Read the Labels?," Purdue University Economics Working Papers 1142, Purdue University, Department of Economics.
- Peter Bardsley, 2003. "Missing Environmental Markets and the Design of," Department of Economics - Working Papers Series 891, The University of Melbourne.
- repec:tpr:qjecon:v:84:y:1970:i:3:p:488-500 is not listed on IDEAS
- Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
- Macho-Stadler, Ines & Perez-Castrillo, J. David, 2001.
"An Introduction to the Economics of Information: Incentives and Contracts,"
Oxford University Press,
edition 2, number 9780199243259.
- Macho-Stadler, Ines & Perez-Castrillo, J. David, 2001. "An Introduction to the Economics of Information: Incentives and Contracts," OUP Catalogue, Oxford University Press, edition 2, number 9780199243273.
- Norton, Bryan & Costanza, Robert & Bishop, Richard C., 1998. "The evolution of preferences: Why 'sovereign' preferences may not lead to sustainable policies and what to do about it," Ecological Economics, Elsevier, vol. 24(2-3), pages 193-211, February.
- Wujin Chu & Woosik Chu, 1994. "Signaling Quality by Selling Through a Reputable Retailer: An Example of Renting the Reputation of Another Agent," Marketing Science, INFORMS, vol. 13(2), pages 177-189.
- Julie A. Caswell & Eliza M. Mojduszka, 1996.
"Using Informational Labeling to Influence the Market for Quality in Food Products,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
- Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- Pauline M. Ippolito, 2003. "Asymmetric Information in Product Markets: Looking to Other Sectors for Institutional Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 731-736.
- Wesley A. Magat & W. Kip Viscusi, 1992. "Informational Approaches to Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 026213277x, June.
- Wills, Ian R. & Harris, Jane, 1994. "Government Versus Private Quality Assurance For Australian Food Exports," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(01), April.
- Cesare Dosi & Michele Moretto, 1999.
"Is Ecolabelling a Reliable Environmental Policy Measure?,"
1999.9, Fondazione Eni Enrico Mattei.
- Cesare Dosi & Michele Moretto, 2001. "Is Ecolabelling a Reliable Environmental Policy Measure?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 113-127, January.
- Cason, Timothy N. & Gangadharan, Lata, 2002.
"Environmental Labeling and Incomplete Consumer Information in Laboratory Markets,"
Journal of Environmental Economics and Management,
Elsevier, vol. 43(1), pages 113-134, January.
- Cason, T.N. & Gangadharan, L., 1999. "Environmental Labeling and Incomplete Consumer Information in Laboratory Markets," Department of Economics - Working Papers Series 708, The University of Melbourne.
- van Ravenswaay, Eileen O., 1996. "Emerging Demands On Our Food And Agricultural System: Developments In Environmental Labeling," Staff Papers 11742, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Ian R. Wills & Jane Harris, 1994. "Government Versus Private Quality Assurance For Australian Food Exports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 77-92, 04.
- Stoneham, Gary & Chaudhri, Vivek & Ha, Arthur & Strappazzon, Loris, 2003. "Auctions for conservation contracts: an empirical examination of Victoria’s BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), December.
- Rametsteiner, Ewald, 2002. "The role of governments in forest certification--a normative analysis based on new institutional economics theories," Forest Policy and Economics, Elsevier, vol. 4(3), pages 163-173, July.
- John G. Riley, 2001. "Silver Signals: Twenty-Five Years of Screening and Signaling," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 432-478, June.
- Ibanez, Lisette & Stenger, Anne, 2000. "Environment and Food Safety in Agriculture: Are Labels Efficient?," Australian Economic Papers, Wiley Blackwell, vol. 39(4), pages 452-64, December.
- Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economics Reports 34069, United States Department of Agriculture, Economic Research Service.
- repec:tpr:qjecon:v:87:y:1973:i:3:p:355-74 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ags:aare05:137828. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.