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Farm Animal Welfare—Testing for Market Failure

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  • Carlsson, Fredrik
  • Frykblom, Peter
  • Lagerkvist, Carl Johan

Abstract

Many consumers are concerned with animal welfare in the conventional production of farm livestock. This concern can be related both to their own and others' consumption. In the latter case, there is a negative externality from consumption. We suggest a survey design that enables us to test for a market failure in farm livestock production. Applying this to the question of battery cages in egg production, we cannot show that a market failure exists. The policy can be extended to a general discussion of how potential market failures for all kind of farm livestock should be managed.

Suggested Citation

  • Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2007. "Farm Animal Welfare—Testing for Market Failure," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 61-73, April.
  • Handle: RePEc:cup:jagaec:v:39:y:2007:i:01:p:61-73_02
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    References listed on IDEAS

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    1. Hopkins, Kelsey A. & McKendree, Melissa G. S. & Rice, Emma D., 2020. "Understanding the U.S. Publics’ Voting on Animal Welfare and Genetically Modified Organism Labeling Ballot Initiatives," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304519, Agricultural and Applied Economics Association.
    2. Otieno, David & Ogutu, Sylvester, 2015. "Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212602, International Association of Agricultural Economists.
    3. Alphonce, Roselyne & Alfnes, Frode & Sharma, Amit, 2014. "Consumer vs. citizen willingness to pay for restaurant food safety," Food Policy, Elsevier, vol. 49(P1), pages 160-166.
    4. Tonsor, Glynn T. & Wolf, Christopher & Olynk, Nicole, 2009. "Consumer voting and demand behavior regarding swine gestation crates," Food Policy, Elsevier, vol. 34(6), pages 492-498, December.
    5. Lu, Yiqing & Cranfield, John & Widowski, Tina, 2013. "Consumer Preference for Eggs from Enhanced Animal Welfare Production System: A Stated Choice Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150276, Agricultural and Applied Economics Association.
    6. Blemings, Benjamin & Zhang, Peilu & Neill, Clinton L., 2023. "Where is the value? The impacts of sow gestation crate laws on pork supply and consumer value perceptions," Food Policy, Elsevier, vol. 117(C).
    7. Mergenthaler, Marcus & Schröter, Iris, 2020. "Market and Institutional Limits in Supplying Animal Welfare: some Conceptual Thoughts for Future Agricultural Economic Research," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 11(02), April.
    8. Tonsor, Glynn T. & Wolf, Christopher A., 2011. "On mandatory labeling of animal welfare attributes," Food Policy, Elsevier, vol. 36(3), pages 430-437, June.
    9. Uehleke, Reinhard & Hüttel, Silke, 2016. "The Hypothetical Free-Rider Deficit In The Demand For Farm Animal Welfare Labeled Meat," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244866, German Association of Agricultural Economists (GEWISOLA).
    10. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(3), pages 1-17, December.
    11. Paul, Andrew S. & Lusk, Jayson L. & Norwood, F. Bailey & Tonsor, Glynn T., 2019. "An experiment on the vote-buy gap with application to cage-free eggs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 102-109.
    12. Boyle, Glenn, 2008. "The Dog That Doesn't Bark: Animal Interests in Economics," Working Paper Series 4017, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    13. Mergenthaler, Marcus & Schröter, Iris, 2020. "Institutionelle Grenzen und Perspektiven bei der ökonomischen Bewertung und der Bereitstellung von Tierwohl," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305598, German Association of Agricultural Economists (GEWISOLA).
    14. Raburn, Samuel, 2024. "Optimal Quality Standards for Credence Goods: An Application to Organic Strawberries and the Commercial Availability Clause Loophole," 2024 Annual Meeting, July 28-30, New Orleans, LA 343623, Agricultural and Applied Economics Association.
    15. Bicknell, Kathryn, 2010. "Economic Considerations of Animal Welfare Policy," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 115718, New Zealand Agricultural and Resource Economics Society.
    16. Ulrich J Frey & Frauke Pirscher, 2018. "Willingness to pay and moral stance: The case of farm animal welfare in Germany," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-20, August.
    17. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    18. Mergenthaler, Marcus & Schröter, Iris, 2020. "Institutionelle Grenzen und Perspektiven bei der ökonomischen Bewertung und der Bereitstellung von Tierwohl," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305598, German Association of Agricultural Economists (GEWISOLA).

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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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