Are Consumers Concerned about Palm Oil? Evidence from a Lab Experiment
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| Source | FOODSECURE working paper no. 7. February 2013. Available for download at www.foodsecure.eu |
| Author(s) | Anne-Célia Disdier; Stéphan Marette; Guy Millet |
| Scheduled date | 2013-02-14 |
| Abstract | A lab experiment evaluates the consequences of the palm oil controversy on
consumers’ willingness to pay (WTP) for food products. Palm oil production induces
environmental damages, and its consumption presents a health risk. However, the production of
alternative oils raises land use issues. In the experiment, successive messages emphasizing the
controversial nature of palm oil and palm oil-free products are delivered to participants.
Information has a significant influence on WTP when it underlines the negative impact of the
related product. This effect is stronger for the palm oil product than for the palm oil-free product.
The experiment also compares the welfare effects of two regulatory instruments, namely a
consumer information campaign versus a per-unit tax. Because of the controversial nature of
both products, the information campaign improves welfare with a much larger impact than the
tax. |
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| Keywords | Consumer information campaign, experimental economics, palm oil, per-unit tax,
willingness to pay |