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A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?

by Deselnicu, Oana C. , Costanigro, Marco , Souza-Monteiro, Diogo M. , McFadden, Dawn Thilmany

in Agricultural commodities / Agricultural economics / Agriculture / Brands / Consumers / Cultural heritage / Estimation methods / Food industries / Food labeling / Food products / Food quality / food valuation / geographical indications / markets / Meats / Meta-analysis / Olive oil / Price premiums / Prices / Product differentiation / Product quality / protected designation of origin / protected designations of origin / protected geographical indications / Quality control / Quality standards / Regulation / supply chain / Trademarks / Valuation / variance / Wines

2013

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A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?

by Deselnicu, Oana C. , Costanigro, Marco , Souza-Monteiro, Diogo M. , McFadden, Dawn Thilmany

2013

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A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?

by Deselnicu, Oana C. , Costanigro, Marco , Souza-Monteiro, Diogo M. , McFadden, Dawn Thilmany

2013

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Journal Article

A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?

Deselnicu, Oana C.,

Costanigro, Marco,

Souza-Monteiro, Diogo M.,

McFadden, Dawn Thilmany

2013

Overview

We conduct a meta-analysis of studies estimating price premiums for agricultural products differentiated by Geographical Indication (GI). Models accounting for differences across product characteristics (food categories) and institutions (PDO, PGI, trademarks) explain a large portion of the variance in estimated premiums. Specifically, GIs capture the highest percentage premium in markets for products with short supply chains and relatively low added value (e.g., agricultural commodities). The premium is lower for wine and olive oil, where alternative means of product differentiation (e.g., branding) exist. Controlling for product characteristics, GIs adopting stricter regulations (PDO) yield larger premiums than less regulated ones (PGI).

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Publisher

Western Agricultural Economics Association

Subject

Agricultural commodities

/ Agricultural economics

/ Brands