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

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.


Issue Date:
2014-04
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/169748
Total Pages:
13
JEL Codes:
Q54; Q130; Q180




 Record created 2017-04-01, last modified 2017-04-26

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