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The Organic Food Premium: A Canterbury Tale

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  • Adelina Gschwandtner

Abstract

The present paper attempts to bring further evidence on the behavioural gap for organic food in Britain. The stated preferences are analysed by contingent valuation, while the revealed preferences are estimated by hedonic pricing. A small but significant gap in the premium for organic food between stated and revealed preferences has been found. This gap may suggest a need for price premium intervention. The estimated price elasticity for organic products is on average above one in absolute value suggesting that a pricing policy could be very effective.

Suggested Citation

  • Adelina Gschwandtner, 2014. "The Organic Food Premium: A Canterbury Tale," Studies in Economics 1411, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:1411
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    Cited by:

    1. Araba, Narjiss, 2022. "Organic markets: a safe haven from volatility," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321209, Agricultural Economics Society - AES.

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    More about this item

    Keywords

    Contingent Valuation; Hedonic Pricing Method; Convergent Validity; Behavioral Gap; Organic Food; Price Premium;
    All these keywords.

    JEL classification:

    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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