The Price Premium for Organic Babyfood: A Hedonic Analysis
The price premium associated with organic babyfood is estimated by applying a hedonic model to price and characteristic data for babyfood products collected in two cities: Raleigh, North Carolina, and San Jose, California. The price per ounce of babyfood is modeled as a function of a number of babyfood and store characteristics. The estimated organic price premium is generally equal to 3 cents to 4 cents per ounce. To the extent this premium reflects consumer willingness to pay to reduce pesticide exposures, it could be used to infer values for reduced dietary exposures to pesticide residues for babies.
Maguire, Kelly B.; Owens, Nicole N.; Simon, Nathalie B., The Price Premium for Organic Babyfood: A Hedonic Analysis, Journal of Agricultural and Resource Economics, Volume 29, Issue 1, April 2004, Pages 132-149
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