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Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?

Author

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  • Faical Akaichi
  • Rodolfo M. Nayga
  • Lawton Lanier Nalley

Abstract

This study measures consumers’ willingness to pay for the attributes greenhouse gas (GHG) emissions during production, food miles and origin (local/non-local) of rice products and assesses the interaction effects (complementarities and substitutions) between these food attributes using a non-hypothetical experimental auction. Results typically show that consumers are willing to pay a price premium for rice that has lower GHG emissions, lower food miles and/or is local. Most importantly, consumers were found to trade off these three food attributes. The results also show that consumers do not perceive the attributes food miles and origin as perfect substitutes.

Suggested Citation

  • Faical Akaichi & Rodolfo M. Nayga & Lawton Lanier Nalley, 2017. "Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 3-31.
    • Handle: RePEc:oup:erevae:v:44:y:2017:i:1:p:3-31.
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    File URL: http://hdl.handle.net/10.1093/erae/jbw008
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    2. My, Nguyen H.D. & Demont, Matty & Van Loo, Ellen J. & de Guia, Annalyn & Rutsaert, Pieter & Tuan, Tran Huu & Verbeke, Wim, 2018. "What is the value of sustainably-produced rice? Consumer evidence from experimental auctions in Vietnam," Food Policy, Elsevier, vol. 79(C), pages 283-296.
    3. Torquati, Biancamaria & Cecchini, Lucio & Paffarini, Chiara & Chiorri, Massimo, 2021. "The economic and environmental sustainability of extra virgin olive oil supply chains: An analysis based on food miles and value chains," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(1), May.
    4. Soregaroli, Claudio & Ricci, Elena Claire & Stranieri, Stefanella & Nayga, Rodolfo M. & Capri, Ettore & Castellari, Elena, 2021. "Carbon footprint information, prices, and restaurant wine choices by customers: A natural field experiment," Ecological Economics, Elsevier, vol. 186(C).
    5. Oriana Gava & Fabio Bartolini & Francesca Venturi & Gianluca Brunori & Angela Zinnai & Alberto Pardossi, 2018. "A Reflection of the Use of the Life Cycle Assessment Tool for Agri-Food Sustainability," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    6. Priestley, Samuel L. & Ganguly, Diya & Palma, Marco A. & Messer, Kent D., 2024. "Consumer Avoidance of Potentially Negative Information about Food," 2024 Annual Meeting, July 28-30, New Orleans, LA 343948, Agricultural and Applied Economics Association.
    7. Cerroni, S. & Watson, V. & Macdiarmid, J., 2018. "Preferences for healthy and environmentally sustainable food: Combining induced-value and home-grown experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277155, International Association of Agricultural Economists.
    8. Danilo Bertoni & Daniele Cavicchioli & Franco Donzelli & Giovanni Ferrazzi & Dario G. Frisio & Roberto Pretolani & Elena Claire Ricci & Vera Ventura, 2018. "Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development," Agriculture, MDPI, vol. 8(12), pages 1-20, December.
    9. Chloe S McCallum & Simone Cerroni & Daniel Derbyshire & W George Hutchinson & Rodolfo M Nayga, 2022. "Consumers’ responses to food fraud risks: an economic experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(4), pages 942-969.

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    More about this item

    Keywords

    willingness to pay; GHG emissions; food miles; local; trade-offs;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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