The Economics of Ecolabelling - SEAFOOD Ecolabelling: Principles and Practice - page 42

2.2.3 Empirical analysis of consumer demand for

ecolabelled seafood

In respect of ecolabelling programmes, it is a testable hypothesis that some propor-
tion of consumers will demand sustainable seafood and pay a premium for these
products, thus creating a market-based incentive to supply fish from sustainable
fisheries or aquaculture facilities using best practices. Based on the theoretical foun-
dations discussed above, empirical analyses of hypotheses about consumer demand
for ecolabelled seafood have been conducted over the last several years (Wessells
et al . 1999a, b, Johnston et al . 2001, Jaffry et al . 2004, Johnston & Roheim 2006).
A number of common themes run throughout these analyses: providing a clear def-
inition of 'sustainability' is important; the identity of the certifying body (whether
it is a governmental agency or private group) may influence consumers' choices;
the consumers' own characteristics may influence their choices; product prices and
price premiums for labelled products are important; and species differences may
affect consumers' choices.
In all these studies, stated preferences are analysed rather than revealed prefer-
ences. In other words, consumers were asked about their hypothetical demand for
ecolabelled seafood, because at the time of most of these empirical studies very
little actual ecolabelled seafood (MSC or GAA) had yet appeared in the market and
analysis of actual consumer market decisions was not possible. Only one labelled
product has been in the market for a decade or more and consumer demand for this
(dolphin-safe tuna) is discussed below.
In the US market, the demand for ecolabelled fresh seafood (specifically cod,
cocktail shrimp and salmon) was assessed in the late 1990s (Wessells et al . 1999b).
The methodology involved gathering data with a survey administered to a random
sample of 1640 US consumers by telephone. The survey was designed in such a
manner that allowed respondents to compare certified (i.e. with an ecolabel) and
uncertified (i.e. without an ecolabel) products, whose prices differed reflecting
a premium paid for the certified product. With the exception of differences in
certification and price, the two products were identical in all regards, including
quality and freshness. Certification was described as a 'program . . . that would
label seafood in order to guarantee that it is caught under strict controls that prevent
too much fishing. Certified seafood will have [a] new label that guarantees no
overfishing. Uncertified seafood will not have this guarantee'.
Consumers were presented with three paired comparisons, in random order, for
salmon, cod and cocktail shrimp. The base price varied for each species, depending
on the range of common retail prices for each product at the time of the survey.
Premiums for certified product ranged between $2.00 and $5.00 per pound. The

certifying agency alternated between the WWF, the National Marine Fisheries
Service (NMFS) and the MSC. It is important to note that certified fresh salmon
was compared to uncertified fresh salmon, certified fresh cod to uncertified fresh

−