Geir Wæhler Gustavsen

Research Scientist

(+47) 907 01 453
geir.gustavsen@nibio.no

Place
Oslo

Visiting address
Storgata 2-4-6, 0155 Oslo

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Abstract

We compare the food values in the USA and Norway using the best–worst scaling approach. The food values examined are aimed at capturing the main issues related to food consumption such as naturalness, taste, price, safety, convenience, nutrition,novelty, origin, fairness, appearance, environmental impact and animal welfare. Results show that respondents in both countries have mostly similar food values,with safety being the most important value; while convenience and novelty are the least important values. Specifically, US respondents consider price more important and naturalness less important than Norwegian respondents.

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Abstract

Consumer resistance against GM crops is still substantial in the United States and Europe. We conducted an internet survey in the United States and Norway with more than 1,000 respondents in each country to estimate consumers’ willingness to pay (WTP) for GM soybean oil, farmed salmon fed with GM soy, and GM salmon. The differences in WTP for the conventional as compared with the GM alternatives are relatively small. Only between 7 and 13% of the respondents indicated that they were willing to pay more than a 20% premium for each of the conventional alternatives as compared to the corresponding GM alternatives. The average WTP premiums range from 7.5 to 9.2%. This suggests a large similarity in WTP in Norway and the United States and across the three products.

Abstract

Food production contributes considerably to global greenhouse gas (GHG) emissions. Animal products – particularly meat from ruminants – generally have higher GHG emissions than plant products. Over the last few decades the global per capita consumption of animal products has increased. This has a negative impact on climate change, land and water availability, and human health. We are faced with the two-fold challenge of reducing GHG emissions while still producing enough food for our growing population. Part of the solution could be for consumers to change towards a more sustainable diet. In this paper we take Norway as a case study for estimating optimal taxes and subsidies on different food items which can change consumption patterns in order to reduce the GHG emissions derived from the average Norwegian diet. In the estimate we ensure that the average calorie intake with the new diet remains the same as with the current diet, and factor in other health considerations. Our findings suggest that limited but useful emission reduction targets can be set with only a few changes in diets. The methodology presented in this paper may be used to estimate optimal climate taxes and subsidies under different emission, quantities, taxes, subsidies, and health constraints.

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Abstract

Norwegian fluid milk consumption has declined steadily over the last twenty years, despite the dairy industry spending increasing amounts of money on advertising. Using a two-stage model, we investigate whether advertising has increased the demand for milk. No effect of advertising on the demand for non-alcoholic beverages is found in the first stage. In the second stage, an almost ideal demand system including advertising expenditures on competing beverages is estimated. The effects of generic advertising within the beverage group are positive and significant for whole milk and negative and significant for lower fat milk. The own-advertising elasticity for the combined fluid milk group is 0.0008. This highly inelastic elasticity suggests that increased advertising will not be profitable for the producers. Several cross-advertising effects are statistically significant, emphasizing the usefulness of a demand system approach.

Abstract

In this paper we first discuss the consumption behaviour of Norwegian farm households. Then, possible consumption models are outlined and our data sample is described. In the next section we discuss the use of panel data methods to estimate our consumption function. Finally, the results from estimating a consumption function with the DPD computer program are discussed. The preliminary results indicate that the GMM estimation using the system estimator of Blundell and Bond (1998) may be superior to the other methods. The parameter of the lagged dependent variable is inside the limits indicated by the OLS and the within estimator. The second lag of the dependent variable is rejected as an instrument and there are strong indications of serial correlation. Later on, we have to transform the model to make the serial correlation disappear. In a later version of this paper we will test if the MPC is changing over time. We will also test if there are different effects from price- and production dependent agricultural income and other income.