I Buy, Therefore I Want? - An interdisciplinary analysis of the consumer decision to buy or not to buy food commodities that are produced in a particularly environment- and animal-friendly way

This paper challenges the following argument that has been launched in the current debate on agricultural policy change in Germany: The low demand for environment- and animal-friendly produced food in Germany shows that the consumers do not want these products. Therefore, the argument holds, political measures to promote the production of such commodities or to increase standards of environmental and animal protection are not justified. Based on theoretical considerations and empirical evidence in the literature, we maintain that-contrary to this argument-the purchasing behaviour of consumers does not necessarily reflect the level of environmental and animal protection they prefer. Combining economic and sociological concepts, we develop a model which identifies the factors that influence the consumer's decision to the disadvantage of environmental- and animal-friendly produced food commodities. The model distinguishes between characteristics of the food products on the one hand, and the decision behaviour of the consumer on the other. Concerning product characteristics, we discuss the following factors: price distortions (due to external effects and differences in market margins, and know-how), and problems concerning the availability, advertising and labelling of environmental- and animal-friendly products. With regard to the decision-behaviour of the consumers, the paper deals with the following issues: (a) in the case of conscious decision-making: trust, information costs, logistical problems, and a social dilemma; (b) in the case of unconscious decision-making: social context, habits, and repression. We then deal with the question, which of these factors that influence consumer decision to the disadvantage of environmental- and animal-friendly food products could justify political intervention. As possible political measures, the paper discusses the internalisation of external effects, the improvement of market transparency, and the implementation of animal protection standards.