The consumer or the citizen: who should pay for the benefits of organic farming?

Organic farming delivers a range of benefits for individual consumers and society at large, which is often referred to as the dual role of organic farming. In recognition of societal benefits - often referred to as public goods - that correspond to policy goals organic farming receives public support in many countries. The growing interest of consumers in organic products is illustrated by the market. In this paper, we present an economic framework, distinguishing between public and private goods and explore where public support is justified and for what consumers can be expected to pay a premium price.