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An experimental study of wine consumers’ willingness to pay for environmental characteristics

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  • Bazoche, P.
  • Deola, C.
  • Soler, Louis-Georges

Abstract

The reduction of pesticides use is becoming a priority for the public authorities in many countries. We conducted an experiment with wine consumers to see whether end-consumers value the dissemination of information about environmentally-friendly production practices. The experiment was devised to (i) evaluate whether there is a premium for environmentally-friendly wines, (ii) determine whether or not consumers are sensitive to label owners who implement and guarantee the environmental actions, (iii) and assess the impact of public messages about the consequences of pesticide use. Some 139 participants were divided randomly into two groups. One group had no specific information about the current state of pesticide use in farming. The other group was given information about pesticide use in farming before making their valuations. Becker-DeGroot-Marshak mechanisms revealed that (i) the environmental signal is valued differently depending on who conveyed the information, and that (ii)dissemination of information about the environmental repercussions of farming methods does not significantly affect willingness-to-pay.

Suggested Citation

  • Bazoche, P. & Deola, C. & Soler, Louis-Georges, 2008. "An experimental study of wine consumers’ willingness to pay for environmental characteristics," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43651, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:43651
    DOI: 10.22004/ag.econ.43651
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    1. Bazoche, Pascale & Issanchou, Sylvie & Brouard, Joëlle & Maratray, Jacques & Ginon, Emilie, 2015. "Evaluating consumers' sustainable choice of wine: A virtual shop experiment," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202735, European Association of Agricultural Economists.
    2. Yi-Man Teng & Kun-Shan Wu & Di-Man Huang, 2014. "The Influence of Green Restaurant Decision Formation Using the VAB Model: The Effect of Environmental Concerns upon Intent to Visit," Sustainability, MDPI, vol. 6(12), pages 1-20, December.
    3. Liobikienė, Genovaitė & Mandravickaitė, Justina & Bernatonienė, Jurga, 2016. "Theory of planned behavior approach to understand the green purchasing behavior in the EU: A cross-cultural study," Ecological Economics, Elsevier, vol. 125(C), pages 38-46.
    4. Agnieszka Leszczynska, 2014. "Willingness to Pay for Green Products vs Ecological Value System," International Journal of Synergy and Research, ToKnowPress, vol. 3(1), pages 67-77.
    5. Todd M. Schmit & Bradley J. Rickard & John Taber, 2013. "Consumer Valuation of Environmentally Friendly Production Practices in Wines, considering Asymmetric Information and Sensory Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 483-504, June.
    6. Villas-Boas, Sofia B & Bonnet, Celine & Hilger, James, 2017. "RUM, WINE, and EXPERTS," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt160178v4, Department of Agricultural & Resource Economics, UC Berkeley.
    7. Maciejczak, Mariusz, 2020. "Factors determining the purchase of wine from climate change adapted production," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(2).
    8. Andreas C. Drichoutis & Stathis Klonaris & Georgia Papoutsi, 2016. "Do good things come in small packages? Willingness to pay for pomegranate wine and bottle size effects," Working Papers 2016-2, Agricultural University of Athens, Department Of Agricultural Economics.
    9. Srivastava, Ankur & Gautam, Vikas & Sharma, Vikram, 2023. "Does consideration for future consequences matter in consumer decision to rent electric vehicles?," Energy Policy, Elsevier, vol. 181(C).
    10. Lionel Valenzuela & Rodrigo Ortega & Daniel Moscovici & Jeff Gow & Adeline Alonso Ugaglia & Radu Mihailescu, 2022. "Consumer Willingness to Pay for Sustainable Wine—The Chilean Case," Sustainability, MDPI, vol. 14(17), pages 1-14, September.
    11. Yaser Sobhanifard & Seyed Mohammad Saleh Hashemi Apourvari, 2022. "Environmental sustainable development through modeling and ranking of influential factors of reference groups on consumer behavior of green products: The case of Iran," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1294-1312, October.

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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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