On Consumers' Valuation of Nutrition Information
Andreas C. Drichoutis
University of Ioannina - Department of Economics; Agricultural University of Athens - Department of Agricultural Economics
Agricultural University of Athens
Rodolfo M. Nayga
University of Arkansas - Dale Bumpers College of Agricultural, Food and Life Sciences; Norsk institutt for landbruksøkonomisk forskning (NILF)
Bulletin of Economic Research, Vol. 61, Issue 3, pp. 223-247, July 2009
The European Union (EU) is contemplating regulations requiring mandatory provision of nutritional information on food products. This study analyses consumers' valuation of nutritional information using data collected from a field survey. The results generally suggest that consumers value and are willing to pay about 5.9 percent of the original price for nutritional information on the food product we studied. Individuals who are non-price-sensitive, nutritionally knowledgeable and with longer time horizon are willing to pay more for nutritional information than others. Considering consumers' willingness to pay for nutritional information on food products and an EU impact assessment study, the costs of provision of this information are not prohibitive to firms. We estimate that the least conservative cost of labelling to the firm for a specific food product can be as much as 29,431, whereas the average economic value of nutrition information is estimated at 17,064. The firm can therefore recoup the associated costs in less than two months.
Number of Pages in PDF File: 25Accepted Paper Series
Date posted: June 23, 2009
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