Effect of distance of transportation on willingness to pay for food

Consumers' interest in locally produced foods is increasing. Hence, there is a need to decipher and quantify consumers' desire for local foods and understand the underlying causes of this demand. More specifically, we examine in this paper the issue of distance of transportation and its�...

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Bibliographic Details
Published in:Ecological economics 2013-04, Vol.88, p.67-75
Main Authors: Grebitus, Carola, Lusk, Jayson L., Nayga, Rodolfo M.
Format: Article
Language:English
Subjects:
Animal, plant and microbial ecology
Applied ecology
Biological and medical sciences
Consumer preferences
Experimental auction
Food miles
Food safety
Fundamental and applied biological sciences. Psychology
Local economy
Local food
New Ecological Paradigm
Non-hypothetical Vickrey auctions
Transport
Vitaceae
Willingness-to-pay
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Summary:Consumers' interest in locally produced foods is increasing. Hence, there is a need to decipher and quantify consumers' desire for local foods and understand the underlying causes of this demand. More specifically, we examine in this paper the issue of distance of transportation and its' impact on consumer preferences. We investigate how consumers' willingness to pay (WTP) for food varies with the distance the food traveled. Results from non-hypothetical second-price auctions indicate that average WTP is falling in distance traveled, indicating a preference for local production. Results also indicate that the marginal value of a mile traveled depends on the type of food studied (apples vs. wine). Socio-demographic characteristics, perceptions of freshness, taste and food safety, as well as support of local economy impact WTP for local foods. ► Analysis of consumers' willingness to pay (WTP) for varying distances of transportation ► Results show that consumers prefer local foods and foods labeled with food miles. ► Perceptions of freshness, taste and food safety show an impact on WTP for local foods. ► Support of local economy affects WTP for local foods. ► Local food marketing strategies could focus on certain food attributes perceived as superior.
ISSN:0921-8009
1873-6106
DOI:10.1016/j.ecolecon.2013.01.006