Are consumers willing to pay for quality european food labelling? a choice experiment approach
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Date
2017
Authors
Gracia Royo, AzucenaPérez y Pérez, Luis
Barreiro Hurlé, Jesús
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Abstract
This paper analyses consumer preferences for European food quality labels. With the extra virgin olive oil
as a case study, the Protected Designation of Origin (PDO) and the EU organic production labels are
assessed in order to know if consumers are willing to pay higher prices for them, and whether these
European food labels are complementarians or substitutes. A choice experiment designed to estimate twoway
interactions was used. Data was gathered from a self-administrated survey in Spain to a total of 540
respondents. An Error Component Random Parameter Logit model with correlated errors was estimated
to measure the effect of both labels on the utility of consumers. Results indicated that the PDO and the
EU organic labels are positively valued: consumers are willing to pay an extra-price of approximately
2€/liter for a bottle of olive oil with the PDO label and approximately 1€/liter more for an olive oil with
the EU organic label. In addition, the interaction between the two labels was statistically significant and
negative, so the simultaneous provision of both labels does not increase consumers’ willingness to pay.
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Keywords
Extra virgin olive oil, Protected Denomination of Origin, organic production, Spain
Bibliographic citation
XI Congreso De La Asociación Española De Economía Agraria “Sistemas alimentarios y cambio global desde el Mediterráneo”, Ohiruela-Elche- Alicante, 13-15 septiembre de 2017
AGROVOC subjects
Encuestas al consumidorAceite de oliva
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