On Consumers' Valuation of Nutrition Information

25 Pages Posted: 23 Jun 2009  

Andreas C. Drichoutis

University of Ioannina - Department of Economics; Agricultural University of Athens - Department of Agricultural Economics

Panagiotis Lazaridis

Agricultural University of Athens

Rodolfo M. Nayga

University of Arkansas - Dale Bumpers College of Agricultural, Food and Life Sciences; Norsk institutt for landbruks√łkonomisk forskning (NILF)

Abstract

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.

Suggested Citation

Drichoutis, Andreas C. and Lazaridis, Panagiotis and Nayga, Rodolfo M., On Consumers' Valuation of Nutrition Information. Bulletin of Economic Research, Vol. 61, Issue 3, pp. 223-247, July 2009. Available at SSRN: https://ssrn.com/abstract=1424133 or http://dx.doi.org/10.1111/j.1467-8586.2009.00303.x

Andreas C. Drichoutis (Contact Author)

University of Ioannina - Department of Economics ( email )

45110 Ioannina
Greece

HOME PAGE: http://works.bepress.com/andreas_drichoutis/

Agricultural University of Athens - Department of Agricultural Economics ( email )

Iera Odos 75
Athens, Votanikos 11855
Greece

Panagiotis Lazaridis

Agricultural University of Athens ( email )

Iera Odos 75
Athens, Votanikos 11855
Greece

Rodolfo M. Nayga

University of Arkansas - Dale Bumpers College of Agricultural, Food and Life Sciences ( email )

United States

Norsk institutt for landbruks√łkonomisk forskning (NILF)

NO-0030 Oslo
Norway

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