The Value of Collective Reputation for Environmentally Friendly Production Methods: The Case of Val di Gresta

Riccardo Scarpa, Mara Thiene () and Francesco Marangon

Working Papers in Economics from University of Waikato

Abstract: This paper investigates preferences for various environment-friendly production systems using 1949 choices from a sample of 240 respondents that chose amongst different types of carrots. The and multi-attribute stated-preference data collection was based on an experimental designed tailored to identify interaction effects between production methods and place of origin we estimate the effect of collective reputations for growers of an Alpine valley known to be completely dedicated to organic production. The implied WTP distributions are positve for organic and integrated pest management and provide evidence of recognition of a collective reputation for environmentally friendly production methods. Marginal utility of income is found to be systematically linked to socio-economic covariates, while unobserved heterogeneity is found for organic and bio-dynamic production methods and for place of origin, but not for integrated pest management. WTP for organic produce from Val di Gresta is found to be around 1-2 euro/kg depending on budget constraints, and not statistically significant for bio-dynamic production. The study confirms the existence of the growers' reputation for EFPMs and provides an empirical estimate of the premium the market awards to such a reputation.

Keywords: Collective reputation; mixed logit; random utility parameters; sustainable agriculture; Choice modeling; Organic methods (search for similar items in EconPapers)
JEL-codes: C15 C25 Q26 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2007-09-07
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Journal Article: The Value of Collective Reputation for Environmentally-Friendly Production Methods: The Case of Val di Gresta (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:07/11

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