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Farm Animal Welfare - testing for market failure

  • Carlsson, Fredrik

    ()

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Frykblom, Peter

    (Department of Economics, Appalachian State University)

  • Lagerkvist, Carl-Johan

    ()

    (Department of Economics, Swedish University of Agricultural Sciences)

Our increasingly heterogeneous food is at least partly due to concerns over conventional production of farm livestock. Some of these new products have been demand driven while others are a result of politically decided restrictions on production techniques. From a policy perspective, the interesting question is whether there exists a market failure. We suggest a survey design that enables the researcher to measure the eventual external market failures in farm livestock production. Applying this survey design to the question of battery cages in egg production, we cannot show that there exists a market failure. The policy implications are applicable to not only the question of egg production, they can be extended to a general discussion of how potential market failures for all kind of farm livestock should be managed. Logically, if an external effect cannot be shown, the consumer is better off herself making the choice of how her food is produced.

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File URL: http://hdl.handle.net/2077/2810
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 119.

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Length: 21 pages
Date of creation: 24 Nov 2003
Date of revision:
Handle: RePEc:hhs:gunwpe:0119
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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  1. Richard Bennett & Douglas Larson, 1996. "Contingent Valuation Of The Perceived Benefits Of Farm Animal Welfare Legislation: An Exploratory Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 224-235.
  2. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
  3. repec:cup:cbooks:9780521788304 is not listed on IDEAS
  4. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, September.
  5. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  6. Bennett, R. M., 1997. "Farm animal welfare and food policy," Food Policy, Elsevier, vol. 22(4), pages 281-288, August.
  7. Jensen, Helen H. & Yen, Steven & Wang, Qingbin, 1996. "Cholesterol Information and Egg Consumption in the U.S.: A Nonnormal and Heteroscedastic Double Hurdle Model," Staff General Research Papers 1056, Iowa State University, Department of Economics.
  8. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
  9. repec:feb:artefa:0067 is not listed on IDEAS
  10. Richard Bennett, 1995. "The Value Of Farm Animal Welfare," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 46-60.
  11. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
  12. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  13. Kevin J. Boyle & P. Joan Poor & Laura O. Taylor, 1999. "Estimating the Demand for Protecting Freshwater Lakes from Eutrophication," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1118-1122.
  14. Brunstad, R.J. & Gaasland, I. & Vardal, E., 1999. "Agricultural Production and the Optimal Level of Landscape Preservation," Norway; Department of Economics, University of Bergen 205, Department of Economics, University of Bergen.
  15. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  16. Hamilton, Stephen F. & Sunding, David L. & Zilberman, David, 2003. "Public goods and the value of product quality regulations: the case of food safety," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 799-817, March.
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