An (in)efficiency based measurement of economic resilience

The ecosystem and the economic subsystem are interlinked. In fact, it is the overconsumption of scarce resources or the overproduction of bad outputs at economic system level that causes a great part of the imbalances at the ecosystem level. Some imbalances do not originate at the economic system level, but are due to external factors. Given the possibility of external shocks, respecting static sustainability thresholds is not a guarantee for system sustainability. In a dynamic setting, the concept of resilience is therefore helpful. In this paper we show how this concept can complement the traditional efficiency approach to come to a sustainable value creating economic system.Resource /Energy Economics and Policy,

Differences in retail strategies on the emerging organic market

Abstract: Purpose – The organic product market can be considered as an emerging market. Since the 1990s it has experienced rapid growth, and supermarket chains have become the sales channel with the largest market share and are the main driver for further growth. However, different supermarket retail groups have very different strategies concerning the marketing of organic products. The purpose of this paper is to gain insight into the different strategies of retailers who are active in the organic product market and to explain the drivers which may underlie them. Design/methodology/approach – The strategies of the three most important Belgian retailers that market organic products, and in particular organic beef, are analyzed. Data were collected through interviews with the retailers' staff and through observations in retail outlets. Also, GfK-household panel data which recorded all purchases of 3,000 Belgian households and a postal survey with 529 respondents were used as data sources. Findings – The different strategies used by retailers to market organic foods are associated with the overall characteristics and marketing strategies of the retail groups. Some retail groups have clear “first mover” advantages from engaging in the organic product line, while for others an adaptive strategy is more appropriate. Research limitations/implications – The insights from this paper will help the understanding and facilitate the development of future strategies for organic and other high-value or premium products, which will be of interest to researchers and stakeholders who are active in these markets. Practical implications – The retail sector is not a single homogeneous block, but instead consists of retailers who pursue quite different strategies. This concept may have major implications for the future development of high-value markets. Originality/value – Existing relevant theories were applied to the adoption of the organic product line, a segment in the portfolio of retailers that is becoming more important. The empirical material collected sheds new light on the drivers behind retail strategies

- Surplus Value of Organic Food and Farming

This document presents a multidisciplinary research project concerning a possible surplus value for Or-ganic Food and Farming (OFF). The project has started January 1st 2006 and ends November 30th 2007. By weighing results collected through a review of the literature it will be scientifically assessed whether or not OFF outperform conventional food and farming from a point of view of environment friendli-ness, nutritional value and safety. Net benefits for society will then be calculated indicating whether the present support given to OFF is at the optimal level. The scientific evidence will be compared with the perception of 400 Flemish consumers. Based on po-tential gaps between evidence and perception, com-bined with consumer characteristics, interesting sug-gestions for communication and promotion strategies concerning OFF will emerge

Food Certification Schemes as Private Institutions of Sustainability

Institutions of sustainability (PIoS), which are sets of rules that a series of private actors voluntary follow to reach a sustainability target. Within PIoS, a strong position on sustainability themes is used as a mean to maximize private utility. Consequently, there is a potential win-win situation for both the private actors and the society. Typical for these multistakeholder PIoS is their hybrid configuration. Ménard (2004) introduced the concept of hybrids as an intermediate between pure anonymous spot markets and firms as hierarchies. It is a governance structure where actors have transferred part of their autonomous property rights to others, in order to allow for some coordination between partners. One of the main examples of PIoS in the food sector are private standards and certification schemes, developed to guide chain members to reach certain social and ecological objectives

Personal determinants of organic food consumption: a review

Purpose - A lot of literature is available that discusses personal determinants of organic food consumption. However different models and determinants are used in the literature. This paper aims to provide an overview, within a framework linking Schwartz' values theory and the theory of planned behaviour (TPB). Also it seeks to focus on the importance of affective attitude, emotions, personal norm, involvement and uncertainty related to organic food consumption. Design/methodology/approach - The paper is based on secondary data sources, namely the literature concerning personal determinants of organic food consumption. Findings - Both the values theory and the theory of planned behaviour have been referred to as relevant theories for better understanding consumers' choice for organic food. Organic food consumption decisions can be explained by relating attributes of organic food with more abstract values such as "security", "hedonism", "universalism", "benevolence", "stimulation", "self-direction" and "conformity". Appealing to these values can positively influence attitudes towards organic food consumption. Besides attitude, subjective and personal norm and (perceived) behavioural control influence consumption of organic food. Research limitations/implications - More research related to the role of uncertainty (reduction) during the process of buying organic food is recommended. Practical implications - Relatively little research has examined the affective component of attitude and emotions in relation to organic food consumption, while these may play an important role as drivers of involvement and thus help to jolt food purchasers out of their routine of buying conventional food and set a first step to adopt organic food. Originality/value - To the authors' knowledge, this is the first paper providing a comprehensive overview and linking the literature on organic food consumption to the values theory and the theory of planned behaviour, including the role of personal norm and focusing on emotions. The proposed integration of mental processing in an organic food consumption model leads to interesting hypotheses and recommendations for policy makers, researchers and stakeholders involved in the organic food market

Farmers’ acceptance of further strengthening of private certification systems

In their continuous quest for ecologic improvements, private voluntary certification initiatives might undermine the willingness to continue of the participating farmers. In this research, the ecologic contribution and the farmers’ acceptance of changing the pesticide policy of a private certification initiative is presented. To measure the perceived farmers’ disutility, the choice preference technique is used. We can conclude that there is room for ecologic improvements but that farmers are in general change averse, primarily because of the fear that price compensation will remain largely absent.choice preference, pesticides, certification, Crop Production/Industries, Demand and Price Analysis,

Performance and optimization of farm certification systems as private institutions of sustainability

The demand for an ecologically and socially more responsible production has increased dramatically. Traditionally, public authorities intervene by means of regulations and economic stimuli, but also private market parties integrate social and ecological concerns into their business objectives. As such they hope to create added value. Consequently, this can result into a win-win for both the private actor and the society. To operationalize these private initiatives in the farm sector, certification schemes with private standards and labels are used. These certification schemes can be considered as an example of Private Institutions of Sustainability, which are sets of rules voluntary followed by private market actors to reach a sustainability target. The doctoral thesis investigates whether these certification schemes and labels, as examples of Private Institutions of Sustainability, are a promising instrument to realize sustainable development. The introductory part focuses on why market actors are interested in these Private Institutions of Sustainability. A first descriptive analysis places PIoS between other sustainable development initiatives. According to different market actors PIoS are promising both from economic and ecological perspective. An important condition for the success of these schemes is consumer interest. By means of ‘choice preference’-modelling it is shown that there are strong consumer preferences for some sustainability claims. Moreover, different types of consumers perceive the same claims differently. A second important precondition for the success of these schemes is retail interest. In a qualitative analysis different retail strategies for sustainable production were identified. The second part of the thesis focuses on whether these private systems deliver what they promise, which is effectively contributing to ecological, economic and social sustainability. First the contribution of PIoS to ecological sustainability is investigated by means of a meta-analysis. The contribution is confirmed, although some question marks can be placed. To assess the economic performance of these systems the sustainable value method is further optimized. The analysis reveals that firms participating in PIoS create more added value by using ecological resources more efficiently. The social performance was investigated by means of a qualitative analysis of social equity within the value chain. PIoS are not automatically a guarantee for social equity within the value chain. In part three of the dissertation changes are modelled in the PIoS to further improve sustainability. By means of ‘choice preference’-modelling the cost experienced by market actors for ecological changes in the certification scheme is estimated. This enables us to estimate the private cost for further ecological sustainability. In a following step it is shown how the ‘choice preference’-methodology can be used to estimate the desired compensations for institutional changes within the certification scheme. This allows to reduce the information asymmetries during negotiations between participants in the value chain. Finally, a methodology is developed to assess the sustainable efficiency of firms and certification schemes when new sustainability targets are introduced. From the analysis it became clear that firms participating in certification schemes have a higher sustainable efficiency compared to firms who do not. The research shows that there is still room for further ecological and economic improvement by removing current inefficiencies in the systems. Given that these institutions are private, a trade off is made between private and social objectives. Although the role of public authorities has shifted from initiator to monitor, it is important that these give the necessary impulses for further improving PIoS’ sustainability. Finally, the contribution of PIoS to internal value chain social sustainability depends on whether specific rules have been incorporated that safeguard the equity between participants

The nutritional and toxicological value of organic vegetables : consumer perception versus scientific evidence

Purpose - The present study aims to explore and compare consumer perception and scientific evidence related to food quality and food safety aspects of organic versus conventional vegetables. Design/methodology/approach - Primary data on consumer perception were gathered in 2006-2007 through a consumer survey with Flemish adults (n = 529) and compared with scientific evidence from literature. Consumers of organic and conventional vegetables were selected by means of a convenience sampling procedure. Subjects were asked to complete a self-administered questionnaire concerning the perception of the nutritional and toxicological value of organic relative to conventional vegetables. Data processing and analysis included descriptive analysis (frequency distributions), data reduction (Cronbach's alpha test, factor analysis), bivariate analysis (correlations, t-test, ANOVA) and multivariate analysis (stepwise multiple regression). Findings - It was found that organic vegetables are perceived as containing less contaminants and more nutrients, and as such, being healthier and safer compared to conventional vegetables. However, not enough evidence is currently available in the literature to support or refute such a perception, indicating a certain mismatch between consumer perception and scientific evidence. The gap between perception and evidence is larger among older consumers with children. The perception is stronger when the consumption frequency is higher, but is independent of gender, place of residence (rural or urban), education and income level. Also non-users, on average, perceive that organic vegetables have a nutritional and toxicological advantage over conventional vegetables. Research limitations/implications - A non-probability convenience sampling method was applied which limits generalisation of the findings beyond the sample characteristics. Originality/value - This paper is original in comparing consumer perception and scientific facts related to both nutritional and safety aspects of organic versus conventional vegetables