Pricing of Eco-Labels for Salmon in UK Supermarkets
Duke Environmental and Energy Economics Working Paper EE 13-02
37 Pages Posted: 22 Jul 2014
Date Written: May 2013
Eco-labels are important features of many natural resource and food markets. They certify that a product has a desirable intrinsic quality, typically related to a public good such as being sustainably produced. In an increasing number of markets, consumers can choose between different labels that certify different attributes. Two issues that have received limited attention are whether pricing varies across different eco-labels and to what extent different retailers have adopted different pricing strategies for eco-labels. This paper investigates these issues by estimating a hedonic price model for salmon sold in Glasgow, U.K. for eight different retail chains, two eco-labels, and one label of origin. The results show substantial variation in the prices of the different eco-labels and that eco-label premiums vary across retail chains.
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