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Consumer Impact of Animal Welfare Regulation in the California Poultry Industry AgEcon
Allender, William J.; Richards, Timothy J..
This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger households and/or households with limited means are most likely to be affected. Furthermore, the implied welfare loss for consumers is approximately $106 million. Although consumers value cage-free eggs, higher production costs result in a net welfare loss to consumers. One implication of this finding is that a clear labeling practice may be a more efficient way to...
Tipo: Journal Article Palavras-chave: Animal welfare regulation; California poultry; Egg prices; Egg supply; Hen housing; Mixed logit; Willingness to pay; Livestock Production/Industries.
Ano: 2010 URL: http://purl.umn.edu/97856
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