On the economic nature of consumers’ willingness to pay for a selective and sustainable fishery: A comparative empirical study
Keywords:willingness to pay, landing obligation, discards, instrumental variable regression, contingent valuation, sustainable fishery
The EU Landing Obligation (LO) bans discards to incentivize a more selective and sustainable fishery. This regulation may induce a cost to the fishing industry that could be transferred to final fish consumers. We aim to assess the consumers’ reservation price for a sustainable and selective fishery. The methodology follows two steps: We first assess the value of the reservation price (willingness to pay, WTP) for a sustainable and selective fishery by using contingent valuation methods from a comparative perspective in Spain and Italy. We then attempt to empirically assess the components of WTP by using an original model specification that, unlike those presented in the literature, exogenizes socio-economic variables and uses ideological indicators to explain WTP in a two-line simultaneous model estimated by instrumental variable regression. The results show a positive, though low, WTP across the two samples, and very different impacts of estimated coefficients on the WTP for the two samples. A preliminary interpretation of this divergence highlights that Italian consumers consider LO-incentivized sustainable fishery a pure public good linked to issues of legality, and Spanish consumers consider it an impure public good linked to environmental issues. These differences may indicate how strongly the institutions and the policies in each region are perceived by a different human capital structure. They may also indicate that the problem, the perceptions of it and the solutions to it differ according to the context.
Brecard D., Hlaimi B., Lucas S., et al. 2009. Determinants of demand for green products: An application to eco-label demand for fish in Europe. Ecol. Econ. 69: 115-125. https://doi.org/10.1016/j.ecolecon.2009.07.017
Carson R., Cameron R., Hanemann M., et al. 1992. A Contingent Valuation Study of Lost Passive Use Values Resulting from the Exxon Valdez Oil Spill. A Report for the Attorney General of the State of Alaska; November 19, 1992. 133 pp.
Diamond P. 1993. Experimental evidence. In: Hausman J. (ed.), Contingent valuation: a critical assessment, North Holland Press. Amsterdam.
Hanemann M. 1993. Valuing the environment through continent valuation. J. Econ. Perspect. 8: 19-43. https://doi.org/10.1257/jep.8.4.19
Kahneman D., Knetsch J. 1992. Valuing Public Goods: The Purchase of Moral Satisfaction. J. Environ. Econ. Manage. 22: 57-70. https://doi.org/10.1016/0095-0696(92)90019-S
Loureiro M., Umberger W.J. 2003. Estimating consumer willingness to pay for country-of-origin labeling, J. Agr. Resour. Econ. 28: 287-301.
Nunes P.A.L.D., Shokkaert E. 2003. Identifying the warm glow effect in contingent valuation. J. Environ. Econ. Manage. 45: 231-245. https://doi.org/10.1016/S0095-0696(02)00051-7
Olesen I., Alfnes F., Rora M.B., et al. 2010. Eliciting consumers' willingness to pay for organic and welfare-labelled salmon in a non-hypothetical choice experiment. Livestock Sci. 127: 218-226. https://doi.org/10.1016/j.livsci.2009.10.001
Onofri L. Nunes P.A.L.D., Cenoz J., et al. 2010. Economic Preferences for Language Diversity: A Myth or Reality? An Attempt to Estimate the Economic Value of the Linguistic Landscape. Fondazione Eni Enrico Mattei. SusDiv Paper 15.
How to Cite
Copyright (c) 2011 Consejo Superior de Investigaciones Científicas (CSIC)
This work is licensed under a Creative Commons Attribution 4.0 International License.© CSIC. Manuscripts published in both the printed and online versions of this Journal are the property of Consejo Superior de Investigaciones Científicas, and quoting this source is a requirement for any partial or full reproduction.
All contents of this electronic edition, except where otherwise noted, are distributed under a “Creative Commons Attribution 4.0 International” (CC BY 4.0) License. You may read here the basic information and the legal text of the license. The indication of the CC BY 4.0 License must be expressly stated in this way when necessary.
Self-archiving in repositories, personal webpages or similar, of any version other than the published by the Editor, is not allowed.