Willingness to Pay for Organic Foods: a comparison between Survey Data and Panel Data from Denmark



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1 Average price premiums at the product level may be calculated in 3 ways, depending on purpose:

(A) prices for the same (corresponding conventional) product, purchased by the same household, in any store at any time, using all prices, including prices for products sold as special offers.

(B) prices for the same (corresponding conventional) product, purchased in the same week, in the same store, by any household, using all prices, including prices for products sold as special offers.

(C) as (A), but not including prices for products sold as special offers.

In Table 1, we have followed approach (A), as we wanted to reveal the average price premium for a given organic product that each household is facing, when considering all stores supplying the product. This holds information on the average price premium taking the whole range of stores into consideration.

In Table 5, we have followed approach (C), as we wanted to reveal the willingness to pay (average price premium) for a given organic product, at a given point in time, in a given store. This is the price premium each household is facing when store choice has been done, corresponding to the scenario in the contingent valuation questions in the questionnaire. This way we hope to control for unobservable differences in size, quality and variety in store supply across stores. Furthermore, prices for products bought as special offers are not included, as organic products on special offer may in fact be cheaper than the corresponding conventional product.



Please also note that in Table 1, the prices are from a much longer period compared to Table 5.

2 Almost all milk and most beef have Danish origin, and homogenisation of milk is related to organic production and fat content.
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