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Consumer’'s WTP for Environment-Friendly Production Methods and Collective Reputation for Place of Origin: The Case of Val di Gresta’'s Carrots

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Author Info
Scarpa, Riccardo
Thiene, Mara
Marangon, Francesco

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Abstract

This paper investigates preferences for various environment-friendly production system for carrots using discretechoice multi-attribute stated-preference data amongst buyers and explore the effect of collective reputations from growers of an Alpine valley known to be completely dedicated to organic production. Results show that buyers distinctly recognize only organic production as a production system different from the conventional one, and there is some evidence of recognition of collective reputation. As well as for marginal utility of income, substantial unobserved heterogeneity is found for many skin imperfections, origin from the organic Alpine valley and the organic production methods. The implied sample distributions of WTP for each of these random attributes are then compared.

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Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25637.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25637

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Related research
Keywords: Choice modelling; mixed logit; organic products; marginal utility of income; unobserved taste heterogeneity; status-quo bias; heteroskedasticity; Crop Production/Industries; Environmental Economics and Policy; C15; C25; Q13; Q18;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July. [Downloadable!] (restricted)
  2. Scarpa, Riccardo & Ruto, Eric S. K. & Kristjanson, Patti & Radeny, Maren & Drucker, Adam G. & Rege, John E. O., 2003. "Valuing indigenous cattle breeds in Kenya: an empirical comparison of stated and revealed preference value estimates," Ecological Economics, Elsevier, vol. 45(3), pages 409-426, July. [Downloadable!] (restricted)
  3. Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001. "Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk," 2001 Annual meeting, August 5-8, Chicago, IL 20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Jason A. Winfree & Jill J. McCluskey, 2005. "Collective Reputation and Quality," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(1), pages 206-213, 02. [Downloadable!] (restricted)
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  5. Swait, Joffre & Adamowicz, Wiktor, 2001. "Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 141-167, November. [Downloadable!] (restricted)
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  6. Cuyno, Leah C. M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics, Blackwell, vol. 25(2-3), pages 227-233, September. [Downloadable!] (restricted)
  7. Edward R. Morey & Vijaya R. Sharma & Anders Karlstrom, 2003. "A Simple Method of Incorporating Income Effects into Logit and Nested-Logit Models: Theory and Application," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(1), pages 248-253, 02. [Downloadable!] (restricted)
  8. Train, K. & Weeks, M., 2004. "Discrete Choice Models in Preference Space and Willingness-to Pay Space," Cambridge Working Papers in Economics 0443, Faculty of Economics, University of Cambridge. [Downloadable!]
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