Working Papers in Economics
No 149:
Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs
Fredrik Carlsson ()
, Peter Frykblom ()
and Carl Johan Lagerkvist ()
Abstract: This study employed a choice experiment (CE) to ascertain
consumer preferences and willingness to pay (WTP) for non-market food
product quality attributes. Data were obtained from a large mail survey and
estimated with a random parameter logit model. The results indicate that
Swedish consumers place greater monetary worth on the use of mobile
abattoirs for cattle than for pigs, and even place a negative monetary
value for mobile abattoirs in broiler production. We show how CE data can
be used to estimate individual WTP, using a random parameter logit model.
We find that there is a substantial difference in heterogeneity between
consumers WTP for mobile abattoirs for the types of livestock included.
Based on estimated distributions of WTP and available cost estimates, the
market share for mobile abattoirs is predicted. The approach taken is vital
to agribusinesses intending to serve specialized niche markets. Our results
are useful for forming product differentiation strategies within the food
industry as well as for the formation of food policy.
Keywords: Animal welfare; Choice experiments; Slaughter; Willingness to pay; (follow links to similar papers)
JEL-Codes: D12; Q13; Q18; (follow links to similar papers)
24 pages, November 18, 2004
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