Abstract
Purpose – This study aims to investigate the impact of the Fair Trade label on the market for coffee in Sweden, a country with high public awareness regarding environmental and social matters.Design/methodology/approach – A revealed preference approach is adopted, using weekly scanner sales panel data made available by Nielsen and the Swedish Retail Institute (HUI). The pricing of labelled coffee is studied over the 2005‐2008 period. Hedonic estimates are obtained for what consumers pay for different product characteristics.Findings – Results point to a considerable premium of 38 percent to be paid for Fair Trade labelled coffee in Sweden, underlining high public awareness reflected in the retailers' pricing policy. This estimate is clearly higher than numbers obtained in earlier studies focusing on Italy and the UK.Originality/value – The study provides information on the existing price differences between labelled and conventional coffee. Its main contribution is the analysis of previously unavailable d...
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