Farm Animal Welfare - testing for market failure

Fredrik Carlsson (), Peter Frykblom and Lagerkvist, Carl-Johan ()
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Peter Frykblom: Department of Economics, Appalachian State University, Postal: Boone, North Carolina 28608-2051
Lagerkvist, Carl-Johan: Department of Economics, Swedish University of Agricultural Sciences, Postal: Box 7013, SE 750 07 UPPSALA

No 119, Working Papers in Economics from Göteborg University, Department of Economics

Abstract: Our increasingly heterogeneous food is at least partly due to concerns over conventional production of farm livestock. Some of these new products have been demand driven while others are a result of politically decided restrictions on production techniques. From a policy perspective, the interesting question is whether there exists a market failure. We suggest a survey design that enables the researcher to measure the eventual external market failures in farm livestock production. Applying this survey design to the question of battery cages in egg production, we cannot show that there exists a market failure. The policy implications are applicable to not only the question of egg production, they can be extended to a general discussion of how potential market failures for all kind of farm livestock should be managed. Logically, if an external effect cannot be shown, the consumer is better off herself making the choice of how her food is produced.

Keywords: Animal welfare; choice experiments; market failure (search for similar items in EconPapers)
JEL-codes: D62 Q13 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2003-11-24
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Related works:
Journal Article: Farm Animal Welfare-Testing for Market Failure (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:hhs:gunwpe:0119

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