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Animal Welfare and Eggs – Cheap Talk or Money on the Counter?

Author

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  • Laura Mørch Andersen

    () (Institute of Food and Resource Economics, University of Copenhagen)

Abstract

We estimate revealed willingness to pay for animal welfare using a panel mixed logit model. We utilize a unique household level panel, combining real purchases with survey data on perceived public and private good attributes of different types of eggs. We estimate willingness to pay for organic eggs controlling for trust in a positive connection between the public good animal welfare and the organic label and the private good food safety also connected to the label. Our results suggest that in the real world, animal welfare plays a minor role in the demand for agricultural products.

Suggested Citation

  • Laura Mørch Andersen, 2010. "Animal Welfare and Eggs – Cheap Talk or Money on the Counter?," IFRO Working Paper 2010/6, University of Copenhagen, Department of Food and Resource Economics, revised Apr 2011.
  • Handle: RePEc:foi:wpaper:2010_06
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    File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2010/WP_2010_06_animal_welfare_eggs_revised.pdf
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    References listed on IDEAS

    as
    1. List, John A. & Shogren, Jason F., 1998. "Calibration of the difference between actual and hypothetical valuations in a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 37(2), pages 193-205, October.
    2. John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
    3. Norwood, F. Bailey & Lusk, Jayson L., 2011. "A calibrated auction-conjoint valuation method: Valuing pork and eggs produced under differing animal welfare conditions," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 80-94, July.
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    Citations

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    Cited by:

    1. Laura Mørch Andersen & Thomas Bøker Lund, 2011. "Digging deeper: How do different types of organic consumers influence the increasing organic market share?," IFRO Working Paper 2011/15, University of Copenhagen, Department of Food and Resource Economics.
    2. Tina L. Saitone & Richard J. Sexton & Daniel A. Sumner, 2015. "What Happens When Food Marketers Require Restrictive Farming Practices?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(4), pages 1021-1043.
    3. Laura Mørch Andersen, 2013. "Obtaining reliable Likelihood Ratio tests from simulated likelihood functions," IFRO Working Paper 2013/1, University of Copenhagen, Department of Food and Resource Economics.
    4. Francesca Gerini & Frode Alfnes & Alexander Schjøll, 2016. "Organic- and Animal Welfare-labelled Eggs: Competing for the Same Consumers?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 471-490, June.
    5. Christoph-Schulz, Inken & Salamon, Petra & Weible, Daniela, 2015. "What is the benefit of organically-reared dairy cattle? Societal perception towards conventional and organic dairy farming," 144th Seminar, February 9-13, 2015, Innsbruck-Igls, Austria 206236, European Association of Agricultural Economists.
    6. Christoph-Schulz, Inken & Salamon, Petra & Weible, Daniela, 2015. "What is the benefit of organically-reared dairy cattle? Societal perception towards conventional and organic dairy farming," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 6(3).
    7. Harvey, David & Hubbard, Carmen, 2013. "Reconsidering the political economy of farm animal welfare: An anatomy of market failure," Food Policy, Elsevier, vol. 38(C), pages 105-114.
    8. Heng, Yan & Peterson, Hikaru Hanawa & Li, Xianghong, 2012. "Consumers’ Preferences for Shell Eggs Regarding Laying Hen Welfare," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124592, Agricultural and Applied Economics Association.
    9. Allender, William J. & Richards, Timothy J., 2010. "Consumer Impact of Animal Welfare Regulation in the California Poultry Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(3), December.
    10. Christoph, Inken B. & Buergelt, Doreen & Salamon, Petra & Weible, Daniela & Zander, Katrin, 2012. "A Holistic Approach to Consumer Research on Expectations Regarding Animal Husbandry," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144963, International European Forum on Innovation and System Dynamics in Food Networks.
    11. Lars Gårn Hansen & Laura Mørch Andersen, 2013. "Does Organic Crowding Out Influence Organic Food Demand? – evidence from a Danish micro panel," IFRO Working Paper 2013/2, University of Copenhagen, Department of Food and Resource Economics.
    12. Heng, Yan & Hanawa Peterson, Hikaru & Li, Xianghong, 2013. "Consumer Attitudes toward Farm-Animal Welfare: The Case of Laying Hens," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
    13. Toker Doganoglu & Firat Inceoglu, 2015. "Product Bans May Benefit Consumers: Implications from a New Model Of Vertical Product Differentiation," Journal of Industry, Competition and Trade, Springer, vol. 15(2), pages 155-180, June.
    14. Christoph-Schulz, Inken & Salamon, Petra & Weible, Daniela, 2015. "What is the benefit of organically-reared dairy cattle? Societal perception towards conventional and organic dairy farming," 2015 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 206236, International European Forum on Innovation and System Dynamics in Food Networks.
    15. Heng, Yan & Peterson, Hikaru Hanawa & Li, Xianghong, 2016. "Consumer Responses to Multiple and Superfluous Labels in the Case of Eggs," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), July.

    More about this item

    Keywords

    animal welfare; panel mixed logit; market purchase data; labelling; willingness to pay; altruism;

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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