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Impact of BSE and bird flu on consumers' meat demand in Japan

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  • Takashi Ishida
  • Noriko Ishikawa
  • Mototsugu Fukushige

Abstract

In this article, we investigate the impact of BSE and bird flu on consumers' meat demand in Japan by using the 'almost ideal' demand system. The BSE and bird flu scares brought about a fall in demand for beef and chicken, respectively, and an upturn in demand for pork and fishery products, which are substitutes for beef and chicken in Japan. We also find that the bird flu outbreak had no impact on the market share for beef. This suggests that BSE had a larger impact on consumers' meat demand than did bird flu. Our empirical results also show that BSE has had a persistent impact whereas, bird flu has not. These differences might depend on the characteristics of each disease, such as the incubation period, cure rate and infection risk.

Suggested Citation

  • Takashi Ishida & Noriko Ishikawa & Mototsugu Fukushige, 2010. "Impact of BSE and bird flu on consumers' meat demand in Japan," Applied Economics, Taylor & Francis Journals, vol. 42(1), pages 49-56.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:49-56
    DOI: 10.1080/00036840701564392
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    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Avian Influenza (H5N1)

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    2. Jin Guo & Tetsuji Tanaka, 2020. "The Effectiveness of Self-Sufficiency Policy: International Price Transmissions in Beef Markets," Sustainability, MDPI, vol. 12(15), pages 1-23, July.
    3. Siettou, Christina, 2016. "Avian Influenza: outbreaks and the impact on UK consumer demand for poultry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236328, Agricultural Economics Society.
    4. Zijun Luo & Xu Tian, 2018. "Can China’s meat imports be sustainable? A case study of mad cow disease," Applied Economics, Taylor & Francis Journals, vol. 50(9), pages 1022-1042, February.
    5. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(02), pages 1-16, June.
    6. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.
    7. Satoshi Kabe & Yuichiro Kanazawa, 2014. "Estimating the Markov-switching almost ideal demand systems: a Bayesian approach," Empirical Economics, Springer, vol. 47(4), pages 1193-1220, December.
    8. Shang, Xia & Tonsor, Glynn T., 2017. "Food safety recall effects across meat products and regions," Food Policy, Elsevier, vol. 69(C), pages 145-153.
    9. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    10. Shashika D. Rathnayaka & Saroja Selvanathan & E. A. Selvanathan, 2021. "Demand for animal‐derived food in selected Asian countries: A system‐wide analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 97-122, January.
    11. Byung Min Soon & Wyatt Thompson, 2020. "Japanese beef trade impact from BSE using a time‐varying Armington model," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 385-401, June.
    12. Hsu, Jane Lu & Liu, Kang Ernest & Lee, Hwang-Jaw & Huang, Min-Hsin & Hung, Kelsey Jing-Ru, 2010. "The Influences Of Avian Influenza, Bse, And H1n1 Influenza On Attitudinal Changes In Meat Safety Issues," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116405, European Association of Agricultural Economists.
    13. Aye Chan Myae & Ellen Goddard, 2020. "Household behavior with respect to meat consumption in the presence of BSE and CWD," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 315-341, September.
    14. Melissa Maas & Gumataw Kifle Abebe & Christopher M. Hartt & Emmanuel K. Yiridoe, 2022. "Consumer Perceptions about the Value of Short Food Supply Chains during COVID-19: Atlantic Canada Perspective," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    15. Liu, Kang Ernest & Huang, Min-Hsin & Hsu, Jane Lu & Lee, Hwang-Jaw, 2009. "Avian Influenza Threat and its Potential Impact on Demand for Chicken and Eggs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49297, Agricultural and Applied Economics Association.
    16. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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