Farm Animal Welfare, Consumer Willingness to Pay, and Trust: Results of a Cross-National Survey

Posted: 17 May 2010

See all articles by Giuseppe Nocella

Giuseppe Nocella

affiliation not provided to SSRN

Lionel James Hubbard

University of Newcastle - School of Agriculture, Food and Rural Development (SAFRD); Building Research Establishment

Riccardo Scarpa

University of Waikato - Management School

Abstract

Higher animal welfare standards increase costs along the supply chain of certified animal-friendly products (AFP). Since the market outcome of certified AFP depends on consumer confidence toward supply chain operators complying with these standards, the role of trust in consumer willingness-to-pay (WTP) for AFP is paramount. Results from a contingent valuation survey administered in five European Union countries show that WTP estimates were sensitive to robust measures of consumer trust for certified AFP. Deriving the WTP effect of a single food category on total food expenditure is difficult for survey respondents; hence, a budget approach was employed to facilitate this process.

Keywords: Animal welfare, certification, consumer trust, WTP, budget approach

JEL Classification: C81, Q13, Q18

Suggested Citation

Nocella, Giuseppe and Hubbard, Lionel James and Scarpa, Riccardo, Farm Animal Welfare, Consumer Willingness to Pay, and Trust: Results of a Cross-National Survey. Applied Economic Perspectives and Policy, Vol. 32, No. 2, pp. 275-297, 2010, Available at SSRN: https://ssrn.com/abstract=1607528 or http://dx.doi.org/ppp009

Giuseppe Nocella (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Lionel James Hubbard

University of Newcastle - School of Agriculture, Food and Rural Development (SAFRD) ( email )

Newcastle upon Tyne, Tyne and Wear NE1 7RU
United Kingdom
0191 222 6886 (Phone)

Building Research Establishment

Bucknalls Lane
Garston, Watford WD2 7JR
United Kingdom

Riccardo Scarpa

University of Waikato - Management School ( email )

Hamilton
New Zealand

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