THE POTENTIAL FOR MARKETING PORK PRODUCTS WITH EMBEDDED ENVIRONMENTAL ATTRIBUTES: RESULTS FROM AN EXPERIMENTAL STUDY

Environmental issues such as air and water quality related to livestock production currently receive much attention. Potential methods for environmental improvement range from regulation to market solutions. This study looks at consumer willingness to pay for pork products with embedded environmental attributes. Experimental auctions showed that over one-half of the participants (62%) paid a premium, that did not vary significantly between differing regions of the United States.Environmental Economics and Policy, Livestock Production/Industries, Marketing, Q13, Q25,

An Examination of Additively Separable Willingness-To-Pay for Environmental Attributes: Evidence from a Pork Experiment

This paper examines what is the best method for pork producers to market pork products with environmental attributes. The objective is to examine evidence of whether it is beneficial for pork producers to incorporate multiple environmental attributes into a single product or sell multiple products with a single environmental attribute.Environmental Economics and Policy,

A Regional and Industry Analysis of the Complexity of the Regulatory Environment Affecting Agricultural Producers in California

This paper provides results from a producers survey that enquired about the complexity of the regulatory environment in California. The primary objective of this paper is to examine the relationship between the complexity of the regulatory environment, agricultural industries in California, and different regions in California. This objective is achieved by taking information gathered from a producers survey and applying an ordered logit econometric model using complexity of the regulatory environment as the dependent variable. A secondary objective of this study is to develop a motivation why the complexity of the regulatory environment is important issue to consider. To achieve this goal, the perception of the complexity of the regulatory environment will be examined with potential management options that producers can take including increasing and decreasing their size of operation, leaving agricultural production, and moving out of the state.Agricultural and Food Policy,

An Estimation of the Regulatory Cost on California Agricultural Producers

This paper develops an estimation of the cost of regulations on California agricultural producers which can be used as a baseline for comparing regulatory environments. The estimated regulatory cost in relationship to operating costs for producers is between $2.19 billion to$2.21 billion. The range on percentage of income allocated to regulatory cost is between 5.24% and 9.19%.Environmental Economics and Policy,

INTERPRETING BIDS FROM A VICKREY AUCTION WHEN THERE ARE PUBLIC GOOD ATTRIBUTES

This paper provides a model that allows for interpreting bids in a Vickrey auction when the good has public good attributes. It also examines information obtained from a Vickrey auction, which collected consumer's willingness-to-pay for pork products that had embedded environmental attributes, and applies the new interpretation to the bids.Consumer/Household Economics,

A TALE OF TWO PREMIUMS- EXAMINING BIDS FROM A MULTIPLE ROUND VICKREY AUCTION WITH DIFFERING INFORMATION SETS

Two definitions of willingness-to-pay derived from a Vickrey auction with multi-product and multiple rounds with different information sets are examined. These definitions are examined in the context of valuing pork products with embedded environmental attributes and we show how information can have adverse effects on a base product of comparison.Consumer/Household Economics,

An Analysis of the Tradeoffs between Policy Instruments to Induce Dairy Producers in California to Participate in a Centralized Digester

Tradeoff between different utility rates and policy intervention to induce dairy producer to join a regional digester are studied. Results demonstrate that a regional digester for the dairy industry in California is feasible given the digester receives $0.05 per kWh and government intervention or$0.0925 per kWh with no intervention.Agricultural and Food Policy, Livestock Production/Industries,

ESTIMATING WILLINGNESS-TO-PAY USING A POLYCHOTOMOUS CHOICE FUNCTION: AN APPLICATION TO PORK PRODUCTS WITH ENVIRONMENTAL ATTRIBUTES

This paper utilizes a polychotomous choice function to investigate the relationship between socioeconomic characteristics and willingness-to-pay for embedded environmental attributes. Specifically, a two-stage estimation procedure with an ordered probit selection rule is used to predict the premium payers and the magnitude of the premium they are willing to pay.Research Methods/ Statistical Methods,

Estimating Willingness to Pay Using a Polychotomous Choice Function: An Application to Pork Products with Environmental Attributes

Bid data from a Vickrey auction for pork chops with embedded environmental attributes were analyzed. It was found that approximately 62% of the participants had a positive WTP for the most "environmentally friendly" package of pork. Thirty percent of the participants had no WTP, and 8% had a negative WTP. A polychotomous choice model was used to accommodate data having an anchoring point within the distribution of the data. Standard variables found in the WTP literature coupled with this model were used to predict participants who were premium payers and non-premium payers using an estimated ordered probit equation.anchoring points, environmental attributes, ordered probit, polychotomous choice functions, pork, Vickrey auction, willingness to pay, Consumer/Household Economics, Demand and Price Analysis,

Determining the benefits of environmental improvements in pork production and their sustainability: a community-based study of Iowa\u27s pork industry

What is a sustainable environment worth to pork producers, neighbors, rural community residents, and pork consumers? Surveys and experimental auctions were used to gauge participants\u27 willingness to pay for pork products produced in systems with differing environmental improvements and/ or impact