The Economics of Ecolabelling - SEAFOOD Ecolabelling: Principles and Practice - page 46

The analyses discussed above were all conducted using survey data where respon-
dents were asked to choose among hypothetical products, some of which carried
ecolabels focused on wild fisheries. To date, no peer-reviewed economic research
has been published that has been conducted on market data to determine the actual
consumer demand for ecolabelled seafood. Nor has there been any economic anal-
ysis conducted into the presence of price premiums at any level of the market - at
the retail level or along the market chain to the ex-vessel level. There is anecdotal
evidence to support the presence of price premiums, but as yet there is no firm evi-
dence based on statistical market analysis. The primary reasons for this are (a) lack
of readily accessible data (proprietary and nonproprietary) covering a long enough
time span on which to conduct the analysis; and (b) the complicated nature of the
markets for many of the certified fisheries, in which teasing out the price effects of
certification from the effects of other factors influencing price is difficult. Over time,
some of these difficulties will be solved and market analyses will begin to appear
as questions about the market benefits of ecolabelling programmes will persist.

2.2.4 Consumer demand for dolphin-safe tuna
In contrast to the above research on preferences, market data on consumer demand
for canned tuna in the US, before and after the introduction of the dolphin-safe label,
have been used to determine whether the presence of the label altered consumer pur-
chases of canned tuna (Teisl et al . 2002). In contrast to MSC and GAA ecolabelling,
dolphin-safe labeling in the US had 100% coverage of canned tuna - consumers
had no choice between canned tuna labeled as dolphin-safe and unlabeled canned
tuna. Thus, price premiums were not an issue within the canned tuna market.
The data used were scanner data from the A.C. Nielsen Marketing Research
Company from April 1988 through to December 1995, including an estimate of
average national monthly sales and prices based on 3000 supermarkets with sales
of at least $2 million annually. The dolphin-safe ecolabel was introduced in April
1990. A demand system analysis was performed, investigating demand for canned
tuna relative to demand for shelf-stable luncheon meats, other canned seafood
(salmon, shrimp and sardines) and canned red meat. The results indicate that the
introduction of the ecolabel increased the market share of canned tuna, relative to
these other products, and that this increase persisted over time, taking into account
relative price and income changes.

2.3 The economics of the market

Unlike the situation in organic food labelling, where the consumer perceives a per-
sonal health benefit from the consumption of organic foods relative to food produced
from conventional practices, consumers who purchase ecolabelled seafood prod-
ucts are doing so out of concern for the environment and they do not necessarily