Expressing values in agricultural markets: An economic policy perspective

Many mechanisms now exist forconsumers to express progressive values inpurchasing decisions. Although demand for suchgoods has grown, these goods remain the purviewof small niche markets. Focusing on the marketfor agricultural goods (and the choice betweenthe paradigms of industrialized versussustainable agriculture), this paper discussesthree major reasons (market failures, entrybarriers, and biased policies) why it isdifficult for consumers to express their valuesfor a more sustainable system in this way, andwhy policy change is needed to create a fairerplaying field. The current policy, voluntarylabeling, is inadequate. A new set of policies,including taxes and subsidies to correct marketfailures, is needed to create opportunities forconsumers to support values such as health,community, and stewardship. Copyright Kluwer Academic Publishers 2004