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Can consumers’ willingness to pay incentivize adoption of environmental impact reducing technologies in meat animal production?
- Source :
-
Food Policy . Dec2014 Part 1, Vol. 49, p41-49. 9p. - Publication Year :
- 2014
-
Abstract
- This study develops a model estimating consumer willingness to pay (WTP) for environmental meat attributes and uses a multi-objective nutritional optimizer to explore the extent to which WTP can offset on-farm costs of reducing water use. Data for the WTP model are sourced from a literature survey of the Agricola and Google Scholar databases yielding 46 studies estimating WTP for pure and impure (organic, grass-fed, natural) environmental meat attributes. Bayesian analysis is used to estimate 3 models varying in independent variables. Models are evaluated by the correlation coefficient ( R 2 ), root mean squared error of prediction (RMSPE) and posterior model probability. The most probable model is then used to estimate a confidence range of WTP for pure environmental beef. Impure environmental labels result in higher WTP than pure labels. Non-hypothetical WTP for pure environmental labeling for North American consumers ranges from 6.7% to 32.6%. A case study is conducted to identify the expected reduction in water use that can be funded from capturing WTP through labeling. A multi-objective nutritional optimizer is used to identify ideal management of beef cattle to reduce whole-system water use in three regions of the United States. Cost increases from management are varied over the predicted range in WTP and combined with the probability of a consumer purchasing beef at each WTP value to identify the theoretical effect on expected environmental impact reduction. A 10% premium is the ideal WTP, resulting in water use reductions between 24.4 L and 41.4 L. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03069192
- Volume :
- 49
- Database :
- Academic Search Index
- Journal :
- Food Policy
- Publication Type :
- Academic Journal
- Accession number :
- 99333540
- Full Text :
- https://doi.org/10.1016/j.foodpol.2014.06.007