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

Moritz Bosbach and Ornella Maietta ()
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Moritz Bosbach: Università di Napoli Federico II

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

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 contain 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 consumers’ implicit price paid for the Fair Trade attribute is significantly and positively affected by a social capital proxy, which is the percentage of co-op members over 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)
New Economics Papers: this item is included in nep-agr, nep-int, nep-mkt and nep-soc
Date: 2018-02-17
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Published in Ecological Economics, 158, 34-41, doi: 10.1016/j.ecolecon.2018.12.010

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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:492

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