Effect of distance of transportation on willingness to pay for food

Carola Grebitus, Jayson L. Lusk, Rodolfo M. Nayga

Research output: Contribution to journalArticle

76 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)67-75
Number of pages9
JournalEcological Economics
Volume88
DOIs
StatePublished - Apr 1 2013

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Keywords

  • Experimental auction
  • Food miles
  • Local food
  • New Ecological Paradigm
  • Non-hypothetical Vickrey auctions

ASJC Scopus subject areas

  • Environmental Science(all)
  • Economics and Econometrics

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