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The Organic Food Premium: A Canterbury Tale

Listed author(s):
  • Adelina Gschwandtner

    ()

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    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.

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    File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/1411.pdf
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    Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 1411.

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    Date of creation: Nov 2014
    Handle: RePEc:ukc:ukcedp:1411
    Contact details of provider: Postal:
    School of Economics, University of Kent, Canterbury, Kent, CT2 7NP

    Phone: +44 (0)1227 827497
    Web page: http://www.kent.ac.uk/economics/

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    1. 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.
    2. Richard Tiffin & Matthieu Arnoult, 2010. "The demand for a healthy diet: estimating the almost ideal demand system with infrequency of purchase," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(4), pages 501-521, December.
    3. Brian P. Poi, 2012. "Easy demand-system estimation with quaids," Stata Journal, StataCorp LP, vol. 12(3), pages 433-446, September.
    4. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-177, March.
    5. Marco Costanigro & Jill J. McCluskey & Ron C. Mittelhammer, 2007. "Segmenting the Wine Market Based on Price: Hedonic Regression when Different Prices mean Different Products," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 454-466, 09.
    6. Michael Burton & Dan Rigby & Trevor Young, 1999. "Analysis of the Determinants of Adoption of Organic Horticultural Techniques in the UK," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 47-63.
    7. Toma, Luiza & McVittie, Alistair & Hubbard, Carmen & Stott, Alistair W., 2009. "A Structural Equation Model of the Factors Influencing British Consumers’ Behaviour towards Animal Welfare," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58149, European Association of Agricultural Economists.
    8. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    9. Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," Land Economics, University of Wisconsin Press, vol. 72(1), pages 80-99.
    10. Kathleen Brooks & Jayson L. Lusk, 2010. "Stated and Revealed Preferences for Organic and Cloned Milk: Combining Choice Experiment and Scanner Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1229-1241.
    11. Rigby, Dan & Young, Trevor & Burton, Michael, 2001. "The development of and prospects for organic farming in the UK," Food Policy, Elsevier, vol. 26(6), pages 599-613, December.
    12. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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