Effect of environmental and altruistic attitudes on willingness-to-pay for organic and fair trade coffee in flanders

Abstract

Sustainability labels, on food products, provide information to consumers that the product has been produced in an ethical and environmentally friendly way. We explore the knowledge and purchasing behaviour of the organic label and fair trade label. Secondly, we investigate the willingness-to-pay (WTP) for food products bearing organic and fair trade labels. Thirdly, we examine the effects of demographic characteristics and environmental and altruistic attitudes on WTP for both organic and fair trade labels. Lastly, we evaluate the correlation in WTP for organic and fair trade labels. We draw our conclusions by analyzing a stated choice experiment on consumers' coffee buying behaviour in Flanders, Belgium. Our results suggest that knowledge of the fair trade label is higher than that of the organic label. The importance of the organic and fair trade labels on coffee purchase decisions, as well as their WTP estimates, were similar. We found a high correlation in WTP for both labels. Our results indicate significant effects of environmental and altruistic attitudes on WTP for both organic and fair trade labels as they apply to coffee.