Year: 2017
Type: article
Abstract: The report compares ecolabeled seafood premiums observed in the market with consumers’ stated willingness to pay premiums. Also ecolabeled premiums in the agricultural sector were examined. The next issue addressed was the sensitivity of changes in the price and premiums of ecolabeled seafood. Empirical findings showed that all things being equal, consumers stated willingness to pay reflects in their actual market behavior though they may pay less than stated. Premiums observed in the aquaculture (24-38%) appear to be generally higher than the fisheries (10-13%). Stated premiums for environmentally sound seafood production however ranged from 15-50%. In the agricultural sector, revealed premiums mostly seem to lie in range of 10-50% with few extremes and stated premiums in the range of 4-300%. Fresh and perishable organic food products tend to attract higher premiums. Stated premiums were conditioned on a number of factors but most evident was consumer’s level of knowledge about ecolabel programs and the aesthetic quality comparable to conventional products. Though premiums varied by consumer segments, reduction in premiums were associated with increase in the number of consumers eager to switch to organic products. Also ecolabeled agricultural products generally appear to be more elastic than conventional products, an indication that reduction in prices would increase the market demand.
Language: English
Topic: Organic Food and Agriculture
Subfield: Plant Science
Domain: Life Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W2619591848