Consumer Responses to Regulatory Change: Evidence from the Swedish Dairy Sector

Abstract

We investigate demand-side effects from a hypothetical policy change in a domestic regulation that currently goes beyond EU requirements. Through two choice experiments on milk and cheese (n = 839; n = 832), we examine Swedish consumers´ preferences regarding regulation of dairy cows’ access to grazing as a product attribute. Results highlight that consumers request compensation for a reduction or removal of the regulation. Preferences varied by sociodemographic factors, especially by age, farm animal experience and gender. Results have implications for agricultural and food policy, highlighting the importance of demand-side effects when changing regulation of agricultural production.