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Supporting Local Food System Development Through Food Price Premium Donations: A Policy Proposal

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  • WILLIS, DAVID B.
  • CARPIO, CARLOS E.
  • BOYS, KATHRYN A.

Abstract

This study investigates consumer preferences for a marketing system that improves integration of farmers into a local food system. Attribute-based methods are used to estimate consumer willingness to pay for a locally grown product that is bundled with a local food bank (LFB) donation. Estimates reveal that, on average, households are willing to pay 11% more for locally grown relative to nonlocal agricultural products. When the locally grown product attribute is combined with a donation to support a LFB, the premium nearly doubles. Results suggest that the proposed system could provide resources to strengthen local food distribution networks.

Suggested Citation

  • Willis, David B. & Carpio, Carlos E. & Boys, Kathryn A., 2016. "Supporting Local Food System Development Through Food Price Premium Donations: A Policy Proposal," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 48(2), pages 192-217, May.
    • Handle: RePEc:cup:jagaec:v:48:y:2016:i:02:p:192-217_00
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    Cited by:

    1. Hasanzade, Vüsal & Elshiewy, Ossama & Toporowski, Waldemar, 2022. "Is it just the distance? Consumer preference for geographical and social proximity of food production," Ecological Economics, Elsevier, vol. 200(C).
    2. Demartini, Eugenio & Ricci, Elena Claire & Mattavelli, Simone & Stranieri, Stefanella & Gaviglio, Anna & Banterle, Alessandro & Richetin, Juliette & Perugini, Marco, 2018. "Exploring Consumer Biased Evaluations: Halos Effects of Local Food and of Related Attributes," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    3. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    4. Izabela Kwil & Katarzyna Piwowar-Sulej & Małgorzata Krzywonos, 2020. "Local Entrepreneurship in the Context of Food Production: A Review," Sustainability, MDPI, vol. 12(1), pages 1-21, January.
    5. Lina Wang & Elliot Rabinovich & Timothy J. Richards, 2022. "Scalability in Platforms for Local Groceries: An Examination of Indirect Network Economies," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 318-340, January.
    6. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    7. 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.
    8. Zsófia Benedek & Imre Fertő & Viktória Szente, 2020. "The Multiplier Effects of Food Relocalization: A Systematic Review," Sustainability, MDPI, vol. 12(9), pages 1-18, April.
    9. Konrád Kiss & Csaba Ruszkai & Antónia Szűcs & Gábor Koncz, 2020. "Examining the Role of Local Products in Rural Development in the Light of Consumer Preferences—Results of a Consumer Survey from Hungary," Sustainability, MDPI, vol. 12(13), pages 1-24, July.
    10. Grebitus, Carola & Printezis, Iryna & Printezis, Antonios, 2017. "Relationship between Consumer Behavior and Success of Urban Agriculture," Ecological Economics, Elsevier, vol. 136(C), pages 189-200.

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