Abstract
This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.
| Language | English (US) |
|---|---|
| Pages | 74-81 |
| Number of pages | 8 |
| Journal | Food Policy |
| Volume | 74 |
| DOIs | |
| State | Published - Jan 1 2018 |
Profile
Keywords
- Animal welfare
- BDM mechanism
- Consumer demand
- Gestation crate/stall
- Laying hen cage
- Mandatory labeling
- Producers
ASJC Scopus subject areas
- Food Science
- Development
- Sociology and Political Science
- Economics and Econometrics
- Management, Monitoring, Policy and Law
Cite this
Demand for farm animal welfare and producer implications : Results from a field experiment in Michigan. / Ortega, David L.; Wolf, Christopher A.
In: Food Policy, Vol. 74, 01.01.2018, p. 74-81.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Demand for farm animal welfare and producer implications
T2 - Food Policy
AU - Ortega,David L.
AU - Wolf,Christopher A.
PY - 2018/1/1
Y1 - 2018/1/1
N2 - This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.
AB - This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.
KW - Animal welfare
KW - BDM mechanism
KW - Consumer demand
KW - Gestation crate/stall
KW - Laying hen cage
KW - Mandatory labeling
KW - Producers
UR - http://www.scopus.com/inward/record.url?scp=85035346705&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85035346705&partnerID=8YFLogxK
U2 - 10.1016/j.foodpol.2017.11.006
DO - 10.1016/j.foodpol.2017.11.006
M3 - Article
VL - 74
SP - 74
EP - 81
JO - Food Policy
JF - Food Policy
SN - 0306-9192
ER -