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

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Journal Article
Applied Economic Perspectives and Policy, 2010, 32 (2), pp. 275 - 297
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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.
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