IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/210940.html
   My bibliography  Save this paper

Are Fair Trade, Carbon Footprint and Organic Attributes competing? Some Evidences from Scotland, Netherland and France

Author

Listed:
  • Akaichi, Faical
  • Grauw, Steven de
  • Darmon, Paul

Abstract

A choice experiment was conducted in Scotland, the Netherlands and France to assess consumers’ preferences and willingness to pay (WTP) for ethical attributes (i.e. fairtrade, organic, lower carbon footprint) of bananas and to find out whether this ethical food attributes are competing in real markets. The results showed that in the three countries consumers are willing to pay a price premium for the three ethical food attributes. The results showed that in the current market situation these ethical foods are not generally competing against each other. Nonetheless, they are likely to become competing for consumer’s money at least when: (1) the price of organic foods is decreased significantly, (2) the price for fairtrade food products is set higher than consumers’ WTP, and (3) bananas labelled has having lower carbon footprint are made available in retail stores and sold at a price lower than consumers’ WTP.

Suggested Citation

  • Akaichi, Faical & Grauw, Steven de & Darmon, Paul, 2015. "Are Fair Trade, Carbon Footprint and Organic Attributes competing? Some Evidences from Scotland, Netherland and France," 2015 Conference, August 9-14, 2015, Milan, Italy 210940, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:210940
    DOI: 10.22004/ag.econ.210940
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/210940/files/Akaichi-Are%20there%20Tradeoffs%20in%20Valuation.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.210940?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
    2. Fredrik Carlsson & Jorge García & Åsa Löfgren, 2010. "Conformity and the Demand for Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 407-421, November.
    3. Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006. "Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December.
    4. Basu, Arnab K. & Hicks, Robert L., 2008. "Label Performance and the Willingness to Pay for Fair Trade Coffee: A Cross-National Perspective," Discussion Papers 44336, University of Bonn, Center for Development Research (ZEF).
    5. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    6. Erik Meijer & Jan Rouwendal, 2006. "Measuring welfare effects in models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 227-244, March.
    7. Yuko Onozaka & Dawn Thilmany Mcfadden, 2011. "Does Local Labeling Complement or Compete with Other Sustainable Labels? A Conjoint Analysis of Direct and Joint Values for Fresh Produce Claim," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 689-702.
    8. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
    9. repec:feb:natura:0061 is not listed on IDEAS
    10. Galarraga, Ibon & Markandya, Anil, 2004. "Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07), pages 1-26.
    11. Rousu Matthew C. & Corrigan Jay R., 2008. "Estimating the Welfare Loss to Consumers When Food Labels Do Not Adequately Inform: An Application to Fair Trade Certification," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-26, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
    2. Volker Lingnau & Florian Fuchs & Florian Beham, 2019. "The impact of sustainability in coffee production on consumers’ willingness to pay–new evidence from the field of ethical consumption," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 65-93, April.
    3. David Bürgin & Robert Wilken, 2022. "Increasing Consumers’ Purchase Intentions Toward Fair-Trade Products Through Partitioned Pricing," Journal of Business Ethics, Springer, vol. 181(4), pages 1015-1040, December.
    4. Wang, Xiaojin, 2016. "Is Fair Trade Fair for Consumers? A Hedonic Analysis of U.S. Retail Fair Trade Coffee Prices," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236344, Agricultural and Applied Economics Association.
    5. 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.
    6. Vo Hong Tu & Steven W. Kopp & Nguyen Thuy Trang & Andreas Kontoleon & Mitsuyasu Yabe, 2021. "UK Consumers’ Preferences for Ethical Attributes of Floating Rice: Implications for Environmentally Friendly Agriculture in Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-27, July.
    7. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    8. Hannes Koppel & Günther Schulze, 2013. "The Importance of the Indirect Transfer Mechanism for Consumer Willingness to Pay for Fair Trade Products—Evidence from a Natural Field Experiment," Journal of Consumer Policy, Springer, vol. 36(4), pages 369-387, December.
    9. Takahashi, Ryo & Todo, Yasuyuki & Funaki, Yukihiko, 2018. "How Can We Motivate Consumers to Purchase Certified Forest Coffee? Evidence From a Laboratory Randomized Experiment Using Eye-trackers," Ecological Economics, Elsevier, vol. 150(C), pages 107-121.
    10. Rommel Salvador & Altaf Merchant & Elizabeth Alexander, 2014. "Faith and Fair Trade: The Moderating Role of Contextual Religious Salience," Journal of Business Ethics, Springer, vol. 121(3), pages 353-371, May.
    11. Paul Pecorino, 2013. "Monopolistic Competition and Public Good Provision with By‐product Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(4), pages 875-893, December.
    12. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    13. Bruno Lanz & Allan Provins, 2013. "Valuing Local Environmental Amenity with Discrete Choice Experiments: Spatial Scope Sensitivity and Heterogeneous Marginal Utility of Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 105-130, September.
    14. Ryoo, Yuhosua & Kim, WooJin, 2023. "Price-ethicality association: When price discounts inhibit ethical purchasing," Journal of Business Research, Elsevier, vol. 169(C).
    15. Jasmin Droege, 2022. "The Handmade Effect: A Model of Conscious Shopping in an Industrialised Economy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(2), pages 263-292, March.
    16. Rashid, Md Sanuwar & Byun, Sang-Eun, 2018. "Are consumers willing to go the extra mile for fair trade products made in a developing country? A comparison with made in USA products at different prices," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 201-210.
    17. Ulf Liebe & Veronika A. Andorfer & Patricia A. Gwartney & Jürgen Meyerhoff, 2014. "Ethical Consumption and Social Context: Experimental Evidence from Germany and the United States," University of Bern Social Sciences Working Papers 7, University of Bern, Department of Social Sciences.
    18. Jeff Luckstead & Heather A. Snell & Lawton Lanier Nalley & Rodolfo M. Nayga & Joshua Sarpaning, 2022. "A multi‐country study on consumers' valuation for child‐labor‐free chocolate: Implications for child labor in cocoa production," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1021-1048, June.
    19. Gohary, Ali & Madani, Fatima & Chan, Eugene Y. & Tavallaei, Stella, 2023. "Political ideology and fair-trade consumption: A social dominance orientation perspective," Journal of Business Research, Elsevier, vol. 156(C).
    20. Takahashi, R. & Todo, Y., 2018. "When do consumers stand up for the environment? Evidence from a large-scale social experiment to promote environmentally friendly coffee," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277507, International Association of Agricultural Economists.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae15:210940. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.