Abstract:
We make an important distinction between product attribute claims related to (1) the environment of the production site and (2) environmentally friendly actions. A producer using type #1 claims benefits from a clean environment, while a producer using type #2 claims undertakes efforts to protect the environment. The categorization of those claims may not be clear to consumers. Rather than focus on informational asymmetry between producers and consumers, this article deals with the way producers may support environmental claims on agrifood products using one of the two categories. Copyright 2007 American Agricultural Economics Association