 Consumer Demand for Ethical Products and the Role of Cultural Worldviews: The Case of Direct-Trade CoffeePaul Hindsley, David McEvoy () and O. Ashton Morgan Ecological Economics, 2020, vol. 177, issue C Abstract: Ethically-labeled products – those that address environmental and human-welfare issues – are increasingly prevalent in consumer decision-making. This research estimates the value consumers place on direct trade coffee, a relatively new and complex ethical product. Direct trade coffee is defined by having three attributes that differentiate it from standard coffee: (i) price premiums are paid directly to farmers; (ii) harvesting practices are sustainable; and (iii) the quality of the product is enhanced. The first two attributes of direct trade coffee lead to social benefits while the third is strictly a private benefit. Using a discrete choice experiment, we find that consumers are willing to pay significant premiums for each of the three attributes and are willing to pay slightly more for those attributes with social benefits. We also find evidence that consumers’ willingness to pay for different attributes of an ethical product varies significantly based on their cultural worldviews. Keywords: Ethically-labeled products; Impure public goods; Direct trade coffee; Discrete choice experiments (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:177:y:2020:i:c:s0921800919317203 DOI: 10.1016/j.ecolecon.2020.106776 Access Statistics for this article Ecological Economics is currently edited by C. J. Cleveland More articles in Ecological Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.