Farm animal welfare, consumer willingness to pay, and trust: results of a cross-national survey
Nocella, G., Hubbard, L. and Scarpa, R. (2010) Farm animal welfare, consumer willingness to pay, and trust: results of a cross-national survey. Applied Economic Perspectives and Policy, 32 (2). pp. 275-297. ISSN 2040-5804
To link to this article DOI: 10.1093/aepp/ppp009
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.