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Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii

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  • Xu, Xun
  • Loke, Matthew K.
  • Leung, PingSun

Abstract

“Buying local” has become one of the most important trends in food marketing. Despite widespread public attention, the influence of the “local” attribute on food prices is not well understood. We aim to begin to fill this gap in research by exploring the presence of a price premium for “local” in actual market transactions. Using scanner data on fresh packaged lettuce in the Honolulu market and hedonic modeling, we investigate consumers’ revealed preferences for the attribute. Contrary to the positive willingness to pay for local food widely reported in previous studies, we find no local premium for fresh lettuce in the Honolulu market.

Suggested Citation

  • Xu, Xun & Loke, Matthew K. & Leung, PingSun, 2015. "Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-14, April.
    • Handle: RePEc:ags:arerjl:200999
    DOI: 10.22004/ag.econ.200999
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    Cited by:

    1. Fang, Xin & Huang, Hui & Leung, PingSun, 2018. "Competitiveness of local food: an empirical analysis of the tomato market dynamics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    2. Yiwen Yang & PingSun Leung & Chu‐wei Tseng, 2022. "Price premium or price discount for locally produced food products? A 5W1H approach in meta‐analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2261-2274, September.
    3. Duke, Joshua M. & Bernard, John C. & Vitz, Gregory, 2021. "A new food label to aid farmland preservation programs: Evidence from a field experiment," Food Policy, Elsevier, vol. 99(C).

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