Will Consumers Pay a Premium for Eco-labeled Apples? |
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| Authors: | MARIA L LOUREIRO JILL J MCCLUSKEY RON C MITTELHAMMER |
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| Institution: | 1. Maria L. Loureiro is an Assistant Professor, Department of Agricultural and Resource Economics, Colorado State University, Fort Collins.;2. Jill J. McCluskey is an Assistant Professor, Department of Agricultural Economics, Washington State University.;3. Ron C. Mittelhammer is a Professor, Department of Agricultural Economics and Adjunct Professor, Program in Statistics, Washington State University. |
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| Abstract: | Farmers and other producers are responding to consumer concerns about pesticides by creating new marketing opportunities for products grown with environmentally sound practices. The eco-label analyzed in this study is certified by The Food Alliance (TFA), a non-profit third-party certifying organization based in Portland, Oregon. We assess the mean willingness to pay (WTP) for eco-labeled apples using a double-bounded logit model. We conclude that female respondents with children, and strong environmental and food safety concerns are more likely to pay a premium for eco-labeled apples. However, the estimated premium is small (about 5 cents per pound over an initial price of 99 cents), reflecting the overall difficulty with garnering a premium based on “environmentally sound”practices. |
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