Journal of Agricultural and Resource Economics
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A choice experiment is used to evaluate how consumers in London, Frankfurt, and Paris value beef steaks with attributes such as: “hormone-free,” “GM-free,” farm-specific source verification, and domestic origin. The effect of various consumer characteristics on steak selection is also evaluated. Results suggest that European consumers are significantly heterogeneous in their preferences for beef steak attributes. French and German consumers have a higher willingness to pay to avoid genetically modified feed use than British consumers, while German and British consumers would pay more for growth hormone-free beef. French and German consumers are willing to pay for farm-specific source verification.
This study estimates wholesale demand for pork, chicken, and quality differentiated beef. We estimate meat retailer own- and cross-price demand elasticities for USDA Choice and Select boxed beef. Results indicate that meat retailers have more elastic demand for lower quality graded beef. Retail beef price has a strong positive relationship with Choice and Select boxed beef demand, and a strong negative relationship with wholesale pork and chicken demand. Seasonal analysis reveals demand for both beef quality grades becomes highly price inelastic during the summer months. The two beef quality grades are substitutes during the winter; however, Select beef is not a substitute for Choice beef in the spring and summer.
Economic assessments of pesticide regulations typically focus on producer impacts and generally ignore possible changes in product demand. These changes may be nonnegligible if real and/or perceived product attributes change. We measure consumers’ willingness to pay (WTP) for the elimination of one insecticide and also a whole group of insecticides in apple production using a multiple-round Vickrey auction. The data are analyzed using nonparametric statistical tests and a double-hurdle model. Our findings show that consumer perceptions of product attributes change if pesticides are removed from production, and this is reflected in WTP changes. WTP is shown to be income elastic.
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