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Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes

Ay, Jean-Sauveur; Chakir, Raja and Marette, Stephan (2016) Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes. Environmental and Resource Economics.

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Document available online at: https://hal.archives-ouvertes.fr/hal-01578227


Summary

This paper investigates how the residents of a French wine-producing region value the attributes of wine. We elicit the willingness-to-pay (WTP) for organic/non-organic and local/non-local wines with increasing levels of information on the impact of agricultural practices at both global and local scales. The analysis shows that there is a significant organic premium associated with both local and non-local wines. This organic premium significantly increases with information and significantly decreases with the distance between the consumer’s home and the vineyard. Based on the econometric predictions of the WTP, we show that a per-unit tax on non-organic wines or a standard imposing organic practices increases welfare through the internalization of the attributes revealed by the experiment.


EPrint Type:Journal paper
Keywords:Organic premium (en), Local premium (en), Experimental economics (en), Wine demand (en)
Subjects:"Organics" in general
Research affiliation: France > INRAe - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement
ISSN:ISSN: 0924-6460
DOI:10.1007/s10640-016-0057-8
Project ID:HAL-INRAe
Deposited By: PENVERN, Servane
ID Code:41463
Deposited On:12 Aug 2021 10:37
Last Modified:12 Aug 2021 10:37
Document Language:English

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