Demand for carbon-neutral food – evidence from a Discrete Choice Experiment for milk and apple juice

Gunnar Breustedt

No 169748, 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France from Agricultural Economics Society

Abstract: To internalize climate-related external costs from agricultural production and food consumption Pigou taxes and carbon credits increase private costs for food. Voluntary consumer choices for carbon-neutral food can be advantageous over such policy measures since they avoid higher food prices for the poor. We empirically analyze consumers’ willingness-to-pay for hypothetical carbon-reduced as well as carbon-neutral milk and apple juice. Data are collected in Discrete Choice Experiments in a German supermarket. Estimates reveal a substantial price premium for the carbon-neutral products which is probably sufficient to cover the products’ extra costs, including the purchase of carbon credits. The premiums are around 0.20 € per liter milk and 0.30 € per liter apple juice. Although the external validity of stated-preference methods is limited the willingness-to-pay measures for organic milk and juice as well as for different real-world labels in our experiment are similar to real-world price premiums.

Keywords: Consumer/Household Economics; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 13
Date: 2014-04
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-ene, nep-env and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc14:169748

DOI: 10.22004/ag.econ.169748

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