Economic analysis of animal welfare policies helps policymakers allocate resources effectively - understanding welfare economics strengthens advocacy arguments and helps prioritise interventions.
Animal welfare economics provides analytical tools for making the case for welfare interventions in policy contexts that require cost-benefit justification. The welfare value of reducing suffering can be estimated using various approaches including willingness-to-pay studies and disability-adjusted life year analogues. Co-benefits including reduced antibiotic resistance, environmental benefits and public health improvements add to the welfare case in economic terms. The attitude-behaviour gap in consumer welfare is an important economic finding - people support welfare improvements more in principle than they demonstrate in purchasing. Policy interventions that reduce the cost premium for higher-welfare products or mandate minimum standards address this gap more effectively than relying on consumer choice alone.