Analyzing Consumers’ Willingness to Pay for Eco-labeled Seafood Products in Coastal and Inland Maine Counties

Around the world, green labels are used for a wide range of food products, both in grocery stores and restaurants. Often, the price for these labeled products is higher due to higher production costs associated with the goods. This leads to demand for these goods in the market and consumers that are willing to pay. Here, I will examine the willingness to pay for three different eco-labeled seafood dishes at a Maine restaurant using a consumer choice experiment survey. I will use this survey to conduct a benefits transfer analysis to approximate the willingness to pay of consumers in each county in Maine. The results suggest that residents living in coastal Maine counties are willing to pay for an eco-labeled seafood dish at a restaurant than those in inland counties. I conclude that benefits transfer analysis is a potential future tool for policy makers to characterize demand for a product in different geographic regions. In order to do this effectively, more extensive research on eco-labels should be conducted on a targeted consumer base in Maine.