Estimating Consumer Willingness to Pay for Country-of-Origin Labeling

• Main Authors: Maria L. Loureiro, Wendy J. Umberger
• Format: Article
• Language: English
• Published: Western Agricultural Economics Association 2003-08-01
• Series: Journal of Agricultural and Resource Economics
• Subjects: beef; consumer preferences; country-of-origin labeling; dichotomous choice; willingness to pay
• Online Access: https://ageconsearch.umn.edu/record/31091

Consumer willingness to pay for a mandatory country-of-origin labeling program is assessed. A consumer survey was conducted during 2002 in several grocery stores in Boulder, Denver, and Fort Collins, Colorado. Econometric results indicate that surveyed consumers are willing to pay an average of $184 per household annually for a mandatory country-of-origin labeling program. Respondents were also willing to pay an average of $1.53 and $0.70 per pound more for steak and hamburger labeled as "U.S. Certified Steak" and "U.S. Certified Hamburger," which is equivalent to an increase of 38% and 58%, respectively, over the initial given price.