Measuring the Impact of Improved Traceability Information in Seafood Markets Following a Large Scale Contamination Event

William L. Huth, Ash Morgan () and John Whitehead

No 16-17, Working Papers from Department of Economics, Appalachian State University

Abstract: We fuse and jointly estimate revealed and stated preference data over the BP Deepwater Horizon oil spill time horizon to analyze the potential for a new seafood traceability system to mitigate long-run decreases in product demand following a major contamination event. Findings indicate that traceability information flows that provide more precise information to oyster consumers regarding the location of harvest ameliorate consumers’ perceived risk of eating oyster meals after the spill, leading to a significant increase in demand. Further, the magnitude of the increase is greater than the negative long-term post-spill effects, leading to overall welfare gains. However, any price increase associated with the information will mitigate the initial welfare gains. Overall, our findings suggest that the potential success of a new seafood traceability system depends on the implementation costs and the extent to which price increases are passed onto consumers. Key Words: Traceability, oyster consumers, consumer surplus, contamination event, risk preferences

Date: 2016
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-env and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:apl:wpaper:16-17

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