Effect of environmental and altruistic attitudes on willingness-to-pay for organic and fair trade coffee in Flanders

L Maaya, M Meulders, N Surmont and Martina Vandebroek

No 627923, Working Papers of Department of Decision Sciences and Information Management, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Decision Sciences and Information Management, Leuven

Abstract: Sustainability labels on food products provide information to consumers that the product has been produced in an ethical way. We explore the knowledge and purchasing behaviour of the organic label and fair trade label. Secondly, we investigate the willingness-to-pay (WTP) for food products bearing organic and fair trade labels. Thirdly, we evaluate the correlation in WTP for organic and fair trade. Lastly, we examine the effect of environmental and altruistic attitudes on WTP for both sustainability labels. We draw our conclusions by analyzing a stated choice experiment on consumers coffee buying behaviour in Flanders, Belgium. Our results suggest that knowledge for the fair trade label is higher than that of the organic label. The importance of the organic and fair trade labels on coffee purchase decisions and their WTP estimates were similar. We found a high correlation in WTP for both labels. Our results indicate significant effects of environmental and altruistic attitudes in WTP for both organic and fair trade labels.

Keywords: Coffee; Organic; Fair trade; Willingness-to-pay; Attitudes (search for similar items in EconPapers)
Pages: 30
Date: 2018-10
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-env, nep-exp, nep-int and nep-soc
Note: paper number KBI_1810
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Published in FEB Research Report KBI_1810

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Persistent link: https://EconPapers.repec.org/RePEc:ete:kbiper:627923

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