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Demand for carbon-neutral food – evidence from a Discrete Choice Experiment for milk and apple juice

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  • Breustedt, Gunnar

Abstract

To internalize climate-related external costs from agricultural production and food consumption Pigou taxes and carbon credits increase private costs for food. Voluntary consumer choices for carbon-neutral food can be advantageous over such policy measures since they avoid higher food prices for the poor. We empirically analyze consumers’ willingness-to-pay for hypothetical carbon-reduced as well as carbon-neutral milk and apple juice. Data are collected in Discrete Choice Experiments in a German supermarket. Estimates reveal a substantial price premium for the carbon-neutral products which is probably sufficient to cover the products’ extra costs, including the purchase of carbon credits. The premiums are around 0.20 € per liter milk and 0.30 € per liter apple juice. Although the external validity of stated-preference methods is limited the willingness-to-pay measures for organic milk and juice as well as for different real-world labels in our experiment are similar to real-world price premiums.

Suggested Citation

  • Breustedt, Gunnar, 2014. "Demand for carbon-neutral food – evidence from a Discrete Choice Experiment for milk and apple juice," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169748, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc14:169748
    DOI: 10.22004/ag.econ.169748
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    Cited by:

    1. Kitchel, Hannah & Boehm, Rebecca L. & Cash, Sean B., 2018. "Does Consumer Climate Change Knowledge and Risk Perception Influence Willingness to Pay for Climate Mitigation in Beverage Crop Production?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274067, Agricultural and Applied Economics Association.
    2. Gianluigi Gallenti & Stefania Troiano & Francesco Marangon & Paolo Bogoni & Barbara Campisi & Marta Cosmina, 2019. "Environmentally sustainable versus aesthetic values motivating millennials’ preferences for wine purchasing: evidence from an experimental analysis in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-16, December.

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