Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement Access content directly
Journal Articles Environmental and Resource Economics Year : 2016

Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes

Raja Chakir
  • Function : Author
  • PersonId : 735195
  • IdHAL : raja-chakir
Stephan Marette

Abstract

This paper investigates how the residents of a French wine-producing region value the attributes of wine. We elicit the willingness-to-pay (WTP) for organic/non-organic and local/non-local wines with increasing levels of information on the impact of agricultural practices at both global and local scales. The analysis shows that there is a significant organic premium associated with both local and non-local wines. This organic premium significantly increases with information and significantly decreases with the distance between the consumer’s home and the vineyard. Based on the econometric predictions of the WTP, we show that a per-unit tax on non-organic wines or a standard imposing organic practices increases welfare through the internalization of the attributes revealed by the experiment.
No file

Dates and versions

hal-01578227 , version 1 (28-08-2017)

Identifiers

Cite

Jean-Sauveur Ay, Raja Chakir, Stephan Marette. Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes. Environmental and Resource Economics, 2016, 68 (online), ⟨10.1007/s10640-016-0057-8⟩. ⟨hal-01578227⟩
303 View
0 Download

Altmetric

Share

Gmail Facebook X LinkedIn More