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

Working Paper No. 93

Published: 2011
Category:
Economics

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

Oana Deselnicu, Marco Costanigro, Diogo M. Souza-Monteiro & Dawn Thilmany McFadden
Full Text PDF
Abstract
Geographical indications (GI) have become a common mean of product differentiation in food markets, and a vast number of studies have estimated the price premium captured by specific GI products. We collected 30 valuation studies conducted across the globe, compiling a total of 183 estimates of GI premia for wine, cheese, coffee, meat, produce, olive oil and grain products.
The average premium is 13.3%, with a rather large standard deviation (24.59%). We show that models accounting for product characteristics and institutional framework (PDO, PGI, trademarks) can explain a large portion of this variance. GIs capture the highest percentage premium in markets for products with short supply chains and relatively low added value (e.g. fresh produce), while premia are 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 premia than less regulated ones (PGI).

Submission

Please send your papers as PDF files to the editor, Victor Ginsburgh, at vginsbur@ulb.ac.be
Papers will be quickly reviewed, prior to potential posting on the website. Decision will be to post or not, possibly with short comments, but without referee reports. The decision will be based primarily on the suitability of the paper’s topic to the aims of the Association.
Such decisions are independent of publication decisions for the Journal of Wine Economics.

Working Paper publication requires that at least one author
is a regular member of AAWE.

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