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Title: Consumer Premiums for Environmentally Friendly Grass-Fed and Organic Milk in the Southeast
Authors: Wong, Jonathan
Raghunathan, Uthra
Escalante, Cesar L.
Wolfe, Kent
Keywords: grass-fed dairy
Heckman probit
ordered probit
organic dairy
willingness to pay
Issue Date: 2010
Abstract: This paper examines determinants of consumers’ willingness to pay a premium for grass-fed and organic dairy by using survey data collected from several south-eastern states. Ordered and Heckman probit regression techniques were used to identify the significance of consumer characteristics on their willingness to pay separate and comparative premiums, respectively, for the two milk product alternatives. The results indicate that while gender and household income are significant determinants of price premiums for both organic and grass-fed dairy products, only household income is positively significant in the Heckman selection estimation.
Institution/Association: Journal of Agribusiness, Volume 28, Number 1, Spring 2010
Total Pages: 14
From Page: 75
To Page: 88
Collections:Volume 28, Number 1, Spring 2010

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