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Willingness to pay for local food?: Consumer preferences and shopping behavior at Otago Farmers Market

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  • Berg, Nathan
  • Preston, Kate L.

Abstract

New Zealand (NZ) survey data from Otago Farmers Market (OFM) provide new expenditures-based measures of local food preference. Discounts applied by consumers to non-local food items (e.g., from USA, China, or elsewhere in NZ) are reported. Some consumers have lexicographic preferences; they are unwilling to purchase non-local food at any price. Others are willing to substitute non-local for local food when priced appropriately. Tobit and Fractional Probit models describe how consumer characteristics affect willingness to pay (WTP) for local food. The mean consumer's premium in WTP when a produce item is “local” ranges from 2.1 to 8.0% and is positively associated with age and income.

Suggested Citation

  • Berg, Nathan & Preston, Kate L., 2017. "Willingness to pay for local food?: Consumer preferences and shopping behavior at Otago Farmers Market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 343-361.
    • Handle: RePEc:eee:transa:v:103:y:2017:i:c:p:343-361
    DOI: 10.1016/j.tra.2017.07.001
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    More about this item

    Keywords

    Local food; Localism; Organic; Free-range; Biological; Food security;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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