Eco-labelled food products: what are consumers paying for?

Douadia Bougherara and Pierre Combris

European Review of Agricultural Economics, 2009, vol. 36, issue 3, 321-341

Abstract: The paper investigates whether the premium consumers are willing to pay for an eco-labelled product is driven by selfish or altruistic motives. Using an incentive-compatible experiment with both a within- and a between-subject design, we study the effect on this premium of information stating that eco-friendly products do not necessarily lead to higher private benefits. We find that this information does not affect buying prices in the within-subject experiment. This suggests that consumers' willingness to pay for the eco-labelled product does not derive from perceived higher taste or safety attributes but from other motives. These results are confirmed in the between-subject design where we find that information affects buying prices for the eco-friendly product but also for the control product in the between-subject experiment. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Date: 2009
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Working Paper: Eco-labelled food products: what are consumers paying for? (2009)
Working Paper: Eco-Labeled Food Products: What are Consumers Paying for ? (2007)
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