Evidence of price premium for MSC-certified products at fishers' level: The case of the artisanal fleet of common octopus from Asturias (Spain)

Eco-labelling is gaining great international importance as a way to promote sustainable fisheries driven by the increasing demand for eco-certified products. Since 2016, the artisanal fleet to fish common octopus (Octopus vulgaris) of Navia-Porcin (Asturias, Spain) is certified by the Marine Stewardship Council (MSC), being the first octopus fishery certified by MSC in the world. Even though there is an ample evidence that confirms the existence of price premiums for seafood products with eco-labels in the retail market, there is still little research demonstrating the existence and the extent of price premiums at the producer or fisher's level, specifically from small-scale or artisanal fleets. The aim of this research is, therefore, to test the existence of a price premium for the artisanal fishers of MSC-certified common octopus from Asturias as well as to estimate the value of this premium. To carry out this analysis, we have applied the difference-in-difference (DiD) method using a panel of prices and quantities of common octopus sold at ports of the Spanish region of Asturias from 2010 to 2019. Our results confirm the existence of a price premium, between a 15.2% and a 24.6% over the uncertified octopus' price, that is paid to Asturian fishers who fish and sell the MSC-certified product. Thus, this paper provides evidence about the economic benefits of environmental certifications for small-scale and artisanal fleets to compensate the certification costs and promote sustainable fishing practices.