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Estimating potential beggar‐thy‐neighbor effects of state labeling programs

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  • Clinton L. Neill
  • Rodney B. Holcomb
  • Jayson L. Lusk

Abstract

In the past 40 years, federal and state policies have financially and philosophically supported the establishment of state‐branded food marketing programs in each state. The intention of the programs is to increase consumer demand for locally grown foods. However, the benefits of such programs are likely to be reduced when multiple states simultaneously market their own local foods. To investigate this issue, we conducted a survey of 6,900 consumers residing in an eight‐state contiguous region. We find that preferences are heterogeneous when neighboring state‐branded products are available, and some consumers will instead buy products from other states. The results suggest caution in estimating the policy impacts of state branding programs without considering how neighboring states react.

Suggested Citation

  • Clinton L. Neill & Rodney B. Holcomb & Jayson L. Lusk, 2020. "Estimating potential beggar‐thy‐neighbor effects of state labeling programs," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 3-19, January.
    • Handle: RePEc:wly:agribz:v:36:y:2020:i:1:p:3-19
    DOI: 10.1002/agr.21625
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    References listed on IDEAS

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    1. Onken, Kathryn A. & Bernard, John C., 2010. "Catching the "Local" Bug: A Look at State Agricultural Marketing Programs," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-7.
    2. Taylor, Mykel R. & Tonsor, Glynn T., 2013. "Revealed Demand for Country-of-Origin Labeling of Meat in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-13, August.
    3. Adelaja, Adesoji O. & Brumfield, Robin G. & Lininger, Kimberly, 1990. "Product Differentiation And State Promotion Of Farm Produce: An Analysis Of The Jersey Fresh Tomato," Journal of Food Distribution Research, Food Distribution Research Society, vol. 21(3), pages 1-14, September.
    4. Hughes, David W. & Boys, Kathryn A., 2015. "What We Know and Don't Know About the Economic Development Benefits of Local Food Systems," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 30(1), pages 1-6.
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    Cited by:

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    2. Kathryn A. Carroll & Lydia Zepeda, 2024. "Food Miles and Regional Logos: Investigating Consumer Preferences in the Midwestern United States," Sustainability, MDPI, vol. 16(7), pages 1-19, March.
    3. Colin A. Carter & K. Aleks Schaefer & Daniel Scheitrum, 2021. "Piecemeal Farm Regulation and the U.S. Commerce Clause," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 1141-1163, May.
    4. Hopkins, Kelsey A. & McKendree, Melissa G.S. & Schaefer, K. Aleks, 2022. "Resolving the reality gap in farm regulation voting models," Food Policy, Elsevier, vol. 112(C).
    5. Jasper Grashuis & Ye Su, 2022. "Inequality aversion and consumer ethnocentrism: Food consumer preferences for payoff distributions to farm producers," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 608-619, July.

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