Economic techniques to estimate the demand for sustainable products: A case study for fair trade and organic coffee in the United Kingdom

Ibon Galarraga, Anil Markandya

Abstract

The hedonic approach is used in this paper to estimate how much is paid for the fair trade/organic characteristic of the coffee in the British market. This information is later combined with the Quantity Based Demand System (QBDS) model –developed by the authors— and the Almost Ideal Demand System (AIDS) (Deaton and Muellbauer, 1980) to completely determine the demand function for different coffees. The QBDS model is easier to handle and less data demanding than the AIDS model in this study.

Keywords

demand systems; hedonic method; coffee demand; labelling

Subject classification

C13, C21, D12.

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References

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