Money well spent? Operations, mainstreaming, and fairness of fair trade
We examine the operations, fairness, and social implications of fair trade certified products. We consider the market for fair trade certified products, which may serve as a substitute to a regular product. A fair trade organization chooses standards for the certification, namely, the (unit) premium...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
| Published: |
Wiley
2019
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| _version_ | 1797075429694111744 |
|---|---|
| author | Lim, M Mak, H Park, S |
| author_facet | Lim, M Mak, H Park, S |
| author_sort | Lim, M |
| collection | OXFORD |
| description | We examine the operations, fairness, and social implications of fair trade certified products. We consider the market for fair trade certified products, which may serve as a substitute to a regular product. A fair trade organization chooses standards for the certification, namely, the (unit) premium and minimum fraction of fair trade raw materials, to maximize the total premium transferred to farmers. We analyze the operations of various stakeholders in the fair trade value chain, as well as the role and social welfare of fair trade organizations with different philosophies. We characterize the firms’ entry decision in the fair trade market as well as the resulting market equilibrium. Furthermore, we examine the impact of mainstreaming, i.e., whether to allow large-scale plantations (often owned by large corporates) to be eligible for fair trade certification or not, which is one of the most discussed topics in the fair trade movement. We also identify the welfare allocation among various stakeholders in the value chain under different certification policies, and thereby address the fairness issue of the fair trade market as well as its resulting social welfare implications. Finally, we obtain a number of policy insights and suggestions to support this nascent marketplace |
| first_indexed | 2024-03-06T23:50:19Z |
| format | Journal article |
| id | oxford-uuid:725ed4fa-9d24-4d04-9460-b61deb2cbda8 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T23:50:19Z |
| publishDate | 2019 |
| publisher | Wiley |
| record_format | dspace |
| spelling | oxford-uuid:725ed4fa-9d24-4d04-9460-b61deb2cbda82022-03-26T19:49:42ZMoney well spent? Operations, mainstreaming, and fairness of fair tradeJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:725ed4fa-9d24-4d04-9460-b61deb2cbda8EnglishSymplectic Elements at OxfordWiley2019Lim, MMak, HPark, SWe examine the operations, fairness, and social implications of fair trade certified products. We consider the market for fair trade certified products, which may serve as a substitute to a regular product. A fair trade organization chooses standards for the certification, namely, the (unit) premium and minimum fraction of fair trade raw materials, to maximize the total premium transferred to farmers. We analyze the operations of various stakeholders in the fair trade value chain, as well as the role and social welfare of fair trade organizations with different philosophies. We characterize the firms’ entry decision in the fair trade market as well as the resulting market equilibrium. Furthermore, we examine the impact of mainstreaming, i.e., whether to allow large-scale plantations (often owned by large corporates) to be eligible for fair trade certification or not, which is one of the most discussed topics in the fair trade movement. We also identify the welfare allocation among various stakeholders in the value chain under different certification policies, and thereby address the fairness issue of the fair trade market as well as its resulting social welfare implications. Finally, we obtain a number of policy insights and suggestions to support this nascent marketplace |
| spellingShingle | Lim, M Mak, H Park, S Money well spent? Operations, mainstreaming, and fairness of fair trade |
| title | Money well spent? Operations, mainstreaming, and fairness of fair trade |
| title_full | Money well spent? Operations, mainstreaming, and fairness of fair trade |
| title_fullStr | Money well spent? Operations, mainstreaming, and fairness of fair trade |
| title_full_unstemmed | Money well spent? Operations, mainstreaming, and fairness of fair trade |
| title_short | Money well spent? Operations, mainstreaming, and fairness of fair trade |
| title_sort | money well spent operations mainstreaming and fairness of fair trade |
| work_keys_str_mv | AT limm moneywellspentoperationsmainstreamingandfairnessoffairtrade AT makh moneywellspentoperationsmainstreamingandfairnessoffairtrade AT parks moneywellspentoperationsmainstreamingandfairnessoffairtrade |