An experimental study of wine consumers' willingness to pay for environmental characteristics
Abstract
The authorities have made it a priority to reduce the use of pesticides in farming. We conduct an experiment with wine consumers to see whether end-consumers value the dissemination of information about environmentally-friendly production practices. The experiment is devised to (i) evaluate whether there is a premium for environmentally-friendly wines, (ii) determine whether or not consumers are sensitive to operators who initiate (and conduct) environmental actions, (iii) and assess the impact of messages to the public about the consequences of pesticide use. Some 139 participants were divided randomly into two groups. One group had no specific information about the current state of pesticide use in farming. The other group was given information about pesticide use in farming before making their valuations. Becker-DeGroot-Marshak mechanisms revealed that (i) the environmental signal was valued differently depending on who conveyed the information, and that (ii) dissemination of information about the environmental repercussions of farming methods did not significantly affect willingness-to-pay.