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Market Evidence of Packer Willingness to Pay for Traceability
Author(s) -
Pouliot Sébastien
Publication year - 2011
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aar019
Subject(s) - traceability , willingness to pay , pound (networking) , economics , price premium , business , econometrics , marketing , microeconomics , statistics , computer science , mathematics , world wide web
This article measures the willingness to pay for the traceability of steers. I use data on the price of steers in Quebec and Ontario to identify a demand shifter in a hedonic framework. I estimate error correction models to provide the first market‐based econometric estimates of the willingness to pay for traceability. My best assessment is that a premium between C.02 and C.05 per pound of carcass (between 1.2% and 3.1%) is paid for traceable steers.
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