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The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?

Moritz Bosbach and Ornella Wanda Maietta

Ecological Economics, 2019, vol. 158, issue C, 34-41

Abstract: This study aims to ascertain whether the implicit price paid for Fair Trade coffee in regular supermarkets is influenced by the stock of social capital in the territory where consumers live. A hedonic regression set-up is adopted, based on Italian scanner data taken at NUTS3 level. Regressors include attributes described on the label, which include separate certifications for Fair Trade and organic/eco-label status, plus various indicators of social capital and their interactions with the Fair Trade and organic/eco-label attributes. The implicit consumer price paid for the Fair Trade attribute is significantly and positively affected by a social capital proxy, the ratio of co-op members to total employment.

Keywords: Ethical consumption; Hedonic regression; Scanner data (search for similar items in EconPapers)
JEL-codes: C50 D12 L66 Z13 (search for similar items in EconPapers)
Date: 2019
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