Consumer Impact of Animal Welfare Regulation in the California Poultry Industry

This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger households and/or households with limited means are most likely to be affected. Furthermore, the implied welfare loss for consumers is approximately $106 million. Although consumers value cage-free eggs, higher production costs result in a net welfare loss to consumers. One implication of this finding is that a clear labeling practice may be a more efficient way to motivate animal welfare and non-cage systems.


Issue Date:
2010-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/97856
Published in:
Journal of Agricultural and Resource Economics, Volume 35, Number 3
Page range:
424-442
Total Pages:
19




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

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