Economic Concepts of Organic Certification

Summary

Certification is a key element in marketing organic food products. Based on economic theory, this report wants to illustrate the economic reasoning for certification. The intention is to provide a description of economic concepts, which is understandable for a wider audience. We are focusing on the basic economic literature.
Chapter 1 “Organic certification system” describes the current control system in the European Union. Why this is necessary, will then be explained based on a synopsis of economic literature. Of specific significance for organic certification and the CERTCOST project are the concepts of institutional economics and economics of crime. The relevant points of economic theory will be presented and discussed in chapter 2 “Theoretical framework”. Finally, the costs and benefits of organic certification will be illustrated in chapter 3 “Costs and benefits of organic certification”.