Implicit Prices of Sustainability Characteristics in Foods: the Case of the German Online Market for Honey

Roland Herrmann, K. Bissinger and L. Krandick

No 277079, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Sustainability characteristics play an increasing role in food markets. At least some consumers are willing to pay a price for organic or regional production, animal welfare or fairtrade. In order to analyze implicit prices of sustainability characteristics, it is important to go beyond consumer studies as such characteristics do affect marginal costs as well. We employ a hedonic price analysis in order to compare price premia of very different sustainability characteristics on the German online market for honey. Honey is particularly interesting as it is perceived as a natural product and regional and organic production competes, e.g., with fairtrade products from developing countries. It is striking that consumer prices for honey contain positive as well as negative implicit prices for sustainability characteristics. Apparently, consumer valuation in terms of the marginal willingness to pay as well as marginal costs differ strongly across the sustainability characteristics. Acknowledgement :

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2018-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277079

DOI: 10.22004/ag.econ.277079

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