Consumer Impact of Animal Welfare Regulation in the California Poultry Industry

William J. Allender and Timothy Richards

Journal of Agricultural and Resource Economics, 2010, vol. 35, issue 3, 19

Abstract: This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger households and/or households with limited means are most likely to be affected. Furthermore, the implied welfare loss for consumers is approximately $106 million. Although consumers value cage-free eggs, higher production costs result in a net welfare loss to consumers. One implication of this finding is that a clear labeling practice may be a more efficient way to motivate animal welfare and non-cage systems.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:97856

DOI: 10.22004/ag.econ.97856

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