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Welfare Effects of Food Labels and Bans with Alternative Willingness to Pay Measures

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  • Jayson L. Lusk
  • Stéphan Marette

Abstract

This paper integrates several areas of the literature by more fully developing the linkage between demand estimates and the welfare effects of food labels and bans for three common survey/experimental approaches used to elicit consumer preferences. We present empirical applications related to beef cloning and methylmercury in fish where, for the same data sets, we compare each value elicitation approach in terms of the consumer surplus changes that result from two regulations. Welfare measures vary significantly across the three methodologies, but the sign of the welfare change is invariant across method.

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  • Jayson L. Lusk & Stéphan Marette, 2010. "Welfare Effects of Food Labels and Bans with Alternative Willingness to Pay Measures," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 319-337.
    • Handle: RePEc:oup:apecpp:v:32:y:2010:i:2:p:319-337.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppp013
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    Cited by:

    1. Stéphan Marette & Anne‐Célia Disdier & Anastasia Bodnar & John Beghin, 2023. "New plant engineering techniques, R&D investment and international trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 349-368, June.
    2. Stéphan Marette & John Beghin & Anne‐Célia Disdier & Eliza Mojduszka, 2023. "Can foods produced with new plant engineering techniques succeed in the marketplace? A case study of apples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 414-435, March.
    3. Trudeau, Jennifer M. & Alicea-Planas, Jessica & Vásquez, William F., 2020. "The value of COVID-19 tests in Latin America," Economics & Human Biology, Elsevier, vol. 39(C).
    4. Vincenzina Caputo & Achilleas Vassilopoulos & Rodolfo M. Nayga Jr. & Maurizio Canavari, 2013. "Welfare Effects of Food Miles Labels," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(2), pages 311-327, July.
    5. S. Marette & L. Nabec & F. Durieux, 2019. "Improving Nutritional Quality of Consumers’ Food Purchases With Traffic-Lights Labels: An Experimental Analysis," Journal of Consumer Policy, Springer, vol. 42(3), pages 377-395, September.
    6. Ay, Jean-Sauveur & Chakir, Raja & Marette, Stephan, 2014. "Does living close to a vineyard increase the willingness-to-pay for organic and local wine?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183075, European Association of Agricultural Economists.
    7. Alexandre Magnier & Nicholas Kalaitzandonakes & Jayson Lusk, 2022. "Changes in Consumer Preferences toward Non‐GM Foods within an Information‐Rich Environment: The Case of the Washington State Ballot Initiative," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 489-510, March.
    8. Stéphan Marette & Jayson L. Lusk & Jutta Roosen, 2010. "Welfare Impact of Information with Experiments: The Crucial Role of the Price Elasticity of Demand," Economics Bulletin, AccessEcon, vol. 30(2), pages 1585-1593.
    9. Rousu, Matthew C. & Marette, Stéphan & Thrasher, James F. & Lusk, Jayson L., 2014. "The economic value to smokers of graphic warning labels on cigarettes: Evidence from combining market and experimental auction data," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 123-134.
    10. Marette Stéphan & Roosen Jutta & Blanchemanche Sandrine, 2011. "The Combination of Lab and Field Experiments for Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 1-36, August.
    11. Maïmouna Yokessa & Stéphan Marette, 2019. "A Tax Coming from the IPCC Carbon Prices Cannot Change Consumption: Evidence from an Experiment," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    12. Disdier, Anne-Célia & Marette, Stéphan, 2012. "How do consumers in developed countries value the environment and workers’ social rights in developing countries?," Food Policy, Elsevier, vol. 37(1), pages 1-11.
    13. Marette, Stéphan & Millet, Guy, 2014. "Economic benefits from promoting linseed in the diet of dairy cows for reducing methane emissions and improving milk quality," Food Policy, Elsevier, vol. 46(C), pages 140-149.
    14. Hugo Groote & Clare Narrod & Simon C. Kimenju & Charles Bett & Rosemarie P. B. Scott & Marites M. Tiongco & Zachary M. Gitonga, 2016. "Measuring rural consumers’ willingness to pay for quality labels using experimental auctions: the case of aflatoxin-free maize in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 33-45, January.
    15. Amanda M Countryman & Alessandro Bonanno, 2020. "A COOL Tale: Economic Effects of the U.S. Mandatory Country of Origin Labeling Repeal," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 888-912, December.
    16. Savchenko, Olesya M. & Kecinski, Maik & Li, Tongzhe & Messer, Kent D. & Xu, Huidong, 2018. "Fresh foods irrigated with recycled water: A framed field experiment on consumer responses," Food Policy, Elsevier, vol. 80(C), pages 103-112.
    17. Castellari Elena & Marette Stéphan & Moro Daniele & Sckokai Paolo, 2019. "The Impact of Information on Willingness to Pay and Quantity Choices for Meat and Meat Substitute," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-16, May.
    18. Jean-Sauveur Ay & Raja Chakir & Stephan Marette, 2017. "Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 997-1019, December.
    19. Anne-Célia Disdier & Stéphan Marette, 2012. "Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers," Journal of Regulatory Economics, Springer, vol. 41(3), pages 337-357, June.
    20. Marette, Stephan, 2017. "Quality, market mechanisms and regulation in the food chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.
    21. Tyler J. Klain & Jayson L. Lusk & Glynn T. Tonsor & Ted C. Schroeder, 2014. "An experimental approach to valuing information," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 635-648, September.
    22. Marette, Stéphan & Messéan, Antoine & Millet, Guy, 2012. "Consumers’ willingness to pay for eco-friendly apples under different labels: Evidences from a lab experiment," Food Policy, Elsevier, vol. 37(2), pages 151-161.
    23. Britwum, Kofi & Yiannaka, Amalia, 2019. "Consumer willingness to pay for food safety interventions: The role of message framing and issue involvement," Food Policy, Elsevier, vol. 86(C), pages 1-1.

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