Animal Welfare and Eggs – Cheap Talk or Money on the Counter?

Authors

  • Laura Mørch Andersen

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    •  Laura Mørch Andersen, Assistant Professor at FOI – Institute of Food and Resource Economics, University of Copenhagen, http://www.foi.dk, e-mail: la@foi.dk. The research was funded by the Danish Social Science Research Council (FSE). I thank Kenneth Train, David Revelt and Paul Ruud for allowing me to use their MMNL software, and for allowing me to use a later version, which allows for correlation between mixed parameters, and I thank Kenneth Train for his clear and speedy answers to my questions. I also thank Martin Browning and Wim Verbeke for useful comments on an earlier version of this article, and not least an anonymous referee who improved this paper significantly.


Abstract

Our estimate revealed willingness to pay for animal welfare using a panel mixed logit model. We utilise a unique household level panel, combining real purchases with survey data on perceived public and private good attributes of different types of eggs. We estimate willingness to pay for organic eggs controlling for trust in a positive connection between the public good animal welfare and the organic label and the private good food safety also connected to the label. Our results suggest that in the real world, animal welfare plays a minor role in the demand for agricultural products.

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