| Abstract |
In the era of carbon neutrality, discourse on the the sustainability of the livestock sector have increased concerns over ESG (Environment, Social and Governance). However, it is unclear to what extent the consumer is willing to trade-off ESG activities in livestock production for higher prices. This study implements a nationwide online survey of 2,000 consumers to uncover consumer preferences for a labelling system that certifieds ESG management activities in Korean Handon pork production. This study incorporates safety and quality, environment, and pro-sociality perceptions into a interval regression for ESG certiciation for Handom pork. Results find that consumers are willing to pay an average premium of 454 KRW per 100g for Handon pork belly with ESG certification. Results also indicate that pro-sociality is the most important perception as a 1 unit increase in the perceived sociality (on a –3 to +3 scale) of ESG certified Handon pork leads to a 72 KRW increase in willingness to pay, equivalent increases in perceived safety and quality leads to 54 KRW increases. Respondents with a high level of awareness of ESG report higher premiums for ESG certified Handon pork. These results suggest that consumer do value the environmental, sockal, and ethical management activities, such as ESG, in the livestock sector.
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