EconPapers    
Economics at your fingertips  
 

Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes

Jean-Sauveur Ay (), Raja Chakir () and Stéphan Marette ()

Environmental & Resource Economics, 2017, vol. 68, issue 4, 997-1019

Abstract: Abstract This paper investigates how the residents of a French wine-producing region value the attributes of wine. We elicit the willingness-to-pay (WTP) for organic/non-organic and local/non-local wines with increasing levels of information on the impact of agricultural practices at both global and local scales. The analysis shows that there is a significant organic premium associated with both local and non-local wines. This organic premium significantly increases with information and significantly decreases with the distance between the consumer’s home and the vineyard. Based on the econometric predictions of the WTP, we show that a per-unit tax on non-organic wines or a standard imposing organic practices increases welfare through the internalization of the attributes revealed by the experiment.

Keywords: Organic premium; Local premium; Experimental economics; Wine demand (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10640-016-0057-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:68:y:2017:i:4:d:10.1007_s10640-016-0057-8

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-10-01
Handle: RePEc:kap:enreec:v:68:y:2017:i:4:d:10.1007_s10640-016-0057-8