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Abstract

Recently niche beef markets, such as organic and grass-fed beef, have been emerging due to producers trying to capture a greater percent of the retail dollars. The purpose of this study is to analyze the willingness to pay for environmentally friendly beef. A statewide survey of 988 people was performed in order to obtain data on the demographics and buying habits of beef consumers. A censored probit model was used to analyze the survey data to determine the mean willingness to pay for environmentally friendly beef product. Interestingly people with higher education were concerned about the effect beef production had on the environment. And those that did realize the previous effect, and already purchased niche beef products were more likely to pay a premium for environmentally friendly beef.

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