Epsilon Archive for Student Projects

Abstract

This thesis investigates Italian consumers’ preferences and willingness to pay (WTP) for improved farm animal welfare (FAW) in poultry production. Based on data from an online discrete choice experiment (n = 358), three FAW attributes were assessed: stocking density, growth rate, and outdoor access. A Mixed Logit Model (MXL) reveals an overall strong preference for welfare-enhancing attributes, indicating a general willingness to pay a price premium for FAW improvements. However, substantial heterogeneity in preferences exists. To better capture this variation, a Hybrid Latent Class Model (HLCM) was estimated, incorporating attitudinal variables into class membership. Three distinct consumer segments emerged: price-sensitive consumers, with a maximum WTP of €4.05 for outdoor access; welfare-oriented consumers, who show the strongest support for welfare improvements and the highest WTP of €10.47 for a longer growing period (46-80 days); and passive supporters, who consistently exhibit negative WTP for all attributes, reflecting an intention-behavior gap. This segmentation not only reveals the diverse valuation of welfare-friendly attributes but also underscores the importance of including negative WTP in aggregate welfare assessments to avoid inflated estimates. These findings highlight a clear gap between ethical attitudes and purchasing behavior, particularly among passive supporters. Policy recommendations include implementing a tiered FAW labelling system, providing financial support for producers, and fostering coordinated action along the supply chain. Overall, the results confirm a general willingness to pay a premium for FAW among Italian consumers, while also underscoring the need for inclusive market strategies and targeted policy interventions to effectively translate ethical concerns into purchasing decisions and foster a more animal-friendly poultry sector in Italy.