Implicit Determinants of Willingness-to-Pay for Animal Welfare Livestock Products

Abstract

This study uses the Random Parameter Logit model and examines the determinants of consumers' willingnessto-pay (WTP) using Structural Equation Modeling to estimate WTP concerning the purchase of animal welfare livestock products. The study results show that consumers generally positively perceive animal welfare-certified pork. The results also suggest the importance of educating people, strengthening their attitudes that purchasing animal welfare-certified pork can effectively solve animal welfare issues, and raising awareness among consumers that their actions can contribute to animal welfare issues. Raising social awareness to evaluate ethical consumption positively would also be helpful.