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BSE Impacts on the Canadian Beef Industry-An Application of the Social Amplification of Risk Framework to Consumer and Producer Behaviour

  • Author / Creator
    Yang, Jun
  • In this study the dynamics of risk perceptions about BSE held by Canadian consumers and cow-calf operators are evaluated. Since the BSE outbreak in 2003, Canadian consumers and cow-calf operators may have had various different reactions to BSE. These reactions may be related to their different levels of risk perception about BSE, risk perceptions which may have evolved over time and may be affected by BSE media information. These reactions may also be the result of factors other than BSE. An analysis of behavioural models of consumers and cow-calf producers is required to reveal the impacts of both BSE risk perceptions and non-BSE related factors. In this study, the risk perceptions about BSE are specified applying a Social Amplification of Risk Framework (SARF) and a Prospective Reference Theory (PRT), and evaluated through market observed behaviour of Canadian consumers and cow-calf producers, an approach which is different than the traditional stated preference approach to eliciting risk perception measures. Parametric and non-parametric structural break tests associated with the BSE outbreak (May 2003) are employed to evaluate changes in consumers or cow-calf operators’ behaviour. The results show that SARF is supported by both panel data and time series data on Canadian consumers and cow-calf producers, suggesting that their risk perceptions about BSE are amplified by both the quantity and quality of BSE information. Risk perceptions about BSE have led to a decrease in beef demand and an increase in slaughter cow supply, which in turn, exacerbated losses in Canadian beef sector. Structural break tests related to the BSE outbreak in May 2003 confirm changes in both consumers’ and cow-calf producers’ behaviour. Consumers with different profiles had different levels of risk perceptions about BSE and different demand and substitution elasticities. Cow-calf producers from different regions also had different levels of risk perceptions about BSE and different supply elasticities, suggesting the need for more analysis of market segmentation. Simulation analyses over the North American beef sector further confirmed the impact of BSE risk perceptions of Canadian consumers and cow-calf producers in the North American beef and live cattle market.  

  • Subjects / Keywords
  • Graduation date
    2010-11
  • Type of Item
    Thesis
  • Degree
    Doctor of Philosophy
  • DOI
    https://doi.org/10.7939/R3SQ1M
  • License
    This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.
  • Language
    English
  • Institution
    University of Alberta
  • Degree level
    Doctoral
  • Department
    • Department of Rural Economy
  • Supervisor / co-supervisor and their department(s)
    • Ellen Goddard, Rural Economy
  • Examining committee members and their departments
    • John Cranfield, Food, Agricultural and Resource Economics, University of Guelph
    • Erasmus Okine, Agricultural, Food & Nutritional Science
    • James Rude, Rural Economy
    • Scott Jeffrey, Rural Economy