An experimental study of wine consumers’ willingness to pay for environmental characteristics

The reduction of pesticides use is becoming a priority for the public authorities in many countries. We conducted an experiment with wine consumers to see whether end-consumers value the dissemination of information about environmentally-friendly production practices. The experiment was devised to (i) evaluate whether there is a premium for environmentally-friendly wines, (ii) determine whether or not consumers are sensitive to label owners who implement and guarantee the environmental actions, (iii) and assess the impact of public messages about the consequences of pesticide use. Some 139 participants were divided randomly into two groups. One group had no specific information about the current state of pesticide use in farming. The other group was given information about pesticide use in farming before making their valuations. Becker-DeGroot-Marshak mechanisms revealed that (i) the environmental signal is valued differently depending on who conveyed the information, and that (ii)dissemination of information about the environmental repercussions of farming methods does not significantly affect willingness-to-pay.Willingness to pay, Wine, Effect of information, Experimental economics, Environment, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,

An experimental study of wine consumers’ willingness to pay for environmental characteristics

The reduction of pesticides use is becoming a priority for the public authorities in many countries. We conducted an experiment with wine consumers to see whether end-consumers value the dissemination of information about environmentally-friendly production practices. The experiment was devised to (i) evaluate whether there is a premium for environmentally-friendly wines, (ii) determine whether or not consumers are sensitive to label owners who implement and guarantee the environmental actions, (iii) and assess the impact of public messages about the consequences of pesticide use. Some 139 participants were divided randomly into two groups. One group had no specific information about the current state of pesticide use in farming. The other group was given information about pesticide use in farming before making their valuations. Becker-DeGroot-Marshak mechanisms revealed that (i) the environmental signal is valued differently depending on who conveyed the information, and that (ii)dissemination of information about the environmental repercussions of farming methods does not significantly affect willingness-to-pay

Qualité des marques de distributeurs et segmentation des rayons

National audienceSuite à la crise de la "vache folle", les distributeurs ont mis au point de nouvelles stratégies. Dans le secteur alimentaire, ils ont modifié l'organisation du circuit d'approvisionnement de façon à améliorer les garanties de qualité et de sécurité alimentaire données aux consommateurs, et ils ont créé de nouvelles marques de distributeurs. Les auteurs proposent l'analyse théorique d'une telle organisation, avec un modèle original de relation verticale entre producteurs et distributeurs, qui prend en compte deux sources d'offre : un marché spot concurrentiel et des contrats d'offre. Ils indiquent ensuite si l'influence de l'augmentation du standard de qualité minimum par les pouvoirs publics peut avoir un effet négatif sur les stratégies de segmentation des distributeurs

Willingness to pay for pesticide reduction in the EU: nothing but organic?

Using experimental auctions carried out on apples in different European countries, this paper contributes to the assessment of consumer willingness to pay for the reduction of pesticides. We study several systems of good agricultural practices, possibly signalled to consumers, ranging from Integrated Pest Management certifications to organic production methods. The results show a relatively homogeneous behaviour of European consumers and reveal that improving the information on pesticide reduction may have unintended consequences. Results also suggest that taste characteristics and reference to a Protected Denomination of Origin should not be overlooked

Willingness to pay for pesticides’ reduction in European union: nothing but organic?

Aliss Working Paper ; 2012-01 JEL codes : C91, D12, Q01, Q13 The research leading to this article has received funding from the European Community’s Seventh Framework Programme [FP7/2007-2011] under grant agreement ‘TEAMPEST 212120 2012-01Using experimental auctions carried out on apples in different European countries, we contribute to the assessment of consumer willingness to pay for the reduction of pesticides. We study several systems of good agricultural practices, possibly signaled to consumers, ranging from public and private Integrated Pest Management (IPM) strategies to organic production methods. The results suggest a relatively homogeneous behavior of European consumers and we show how improving the information on pesticides reduction could have unexpected consequences. Results also show that sensory characteristics or reference to an origin of production should not be overlooked.En utilisant des enchères expérimentales effectuées dans différents pays européens, cet article contribue à l’évaluation du consentement à payer des consommateurs en faveur de la réduction des pesticides. Nous étudions plusieurs systèmes de bonnes pratiques agricoles qui peuvent être signalées aux consommateurs, allant des stratégies publiques et privées de production intégrée, aux modes de production biologique. Les résultats obtenus suggèrent un comportement relativement homogène des consommateurs européens, et nous montrons comment le renforcement de l’information sur la réduction des pesticides peut avoir des conséquences inattendues. Les résultats montrent également comment l’influence des caractéristiques sensorielles et la référence à une origine ne doivent pas être nègligées

Consumers’ willingness to pay for organic products, both with existing brands as the exclusive signal of quality and with additional signals incorporated

Projet financé par la Commission européenne : 7. PCRD. Project N°:212120 TEAMPEST : Theoretical Developments and Empirical Measurement of the External Costs of PesticidesThe main objective of this deliverable is to evaluate consumers’ WTP for organic products and compare both with existing brands as the exclusive signal of quality and with additional signals incorporated. We used an experimental market and we determined consumer’s willingness to pay (WTP) for produce grown with different pesticide levels. For our experimental markets conducted in Portugal (April, 2009), France (May, 2009)and Greece (February, 2010) consumers’ WTP were estimate using the apple example, for three levels of pesticide reduction: i) “Regular”: apples produced in the respect of the legal legislation. These apples don’t have any cue. ii) Integrated Pest Management (IPM): apples produced with a decrease of the pesticides’ use. In our experimental markets, IPM strategy involved three different signals with a “generic” IPM certification, a retailer brand and a protected designation of origin, (iii) “Organic”: apples produced without any synthesis pesticides. More recently, we conducted the experimental market in Netherlands (October,2010). In this country, we tested two types of organic certification: The conventional organic certification, tested in the previous countries (where no chemical pesticides have been used in 3 the production process) and a certification “Organic Plus” where no chemical and organic pesticides have been used. After showing that consumers’ premium for pesticide reduction is not independent from the product’s sensory attributes, we give the quantitative results for the consumers WTP for a pesticide reduction. It should be noted that demand for organic products seems relatively important in the EU countries that we tested. However in Netherlands, organic production seems to be less valued by the consumers. Countries where the experimental auctions were conducted do not necessarily correspond to countries where income levels are highest in the EU (specifically for Portugal and Greece). Moreover, we show that the income is not significant to explain the premium for organic products. This means that the demand for organic product is likely to grow significantly within the EU in the coming years, this demand involves a priori all segments of the population and the willingness to pay for these products is relatively large. This positive result was not observed for less restrictive alternatives (in terms of pesticide reduction), leading to limit the contribution that we can expect from consumers in favor of a partial reduction of pesticides (for example, using integrated pest management-IPM-system). In terms of pesticide reduction, "Nothing but organic" seems to be the leitmotif of European consumers, so it is reasonable to consider an important development of this mode of production in the coming years

Willingness to pay for pesticides’ reduction in European union: nothing but organic?

Aliss Working Paper ; 2012-01 JEL codes : C91, D12, Q01, Q13 The research leading to this article has received funding from the European Community’s Seventh Framework Programme [FP7/2007-2011] under grant agreement ‘TEAMPEST 212120 2012-01Using experimental auctions carried out on apples in different European countries, we contribute to the assessment of consumer willingness to pay for the reduction of pesticides. We study several systems of good agricultural practices, possibly signaled to consumers, ranging from public and private Integrated Pest Management (IPM) strategies to organic production methods. The results suggest a relatively homogeneous behavior of European consumers and we show how improving the information on pesticides reduction could have unexpected consequences. Results also show that sensory characteristics or reference to an origin of production should not be overlooked.En utilisant des enchères expérimentales effectuées dans différents pays européens, cet article contribue à l’évaluation du consentement à payer des consommateurs en faveur de la réduction des pesticides. Nous étudions plusieurs systèmes de bonnes pratiques agricoles qui peuvent être signalées aux consommateurs, allant des stratégies publiques et privées de production intégrée, aux modes de production biologique. Les résultats obtenus suggèrent un comportement relativement homogène des consommateurs européens, et nous montrons comment le renforcement de l’information sur la réduction des pesticides peut avoir des conséquences inattendues. Les résultats montrent également comment l’influence des caractéristiques sensorielles et la référence à une origine ne doivent pas être nègligées