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Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Cost

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  • Jablonski, B. B. R.
  • Schmit, T. M.
  • Kay, D.

Abstract

The number of food hubs—businesses that aggregate and distribute local food—in the United States is growing, fueled in part by increasing public support. However, there have been few data-driven assessments of the economic impacts of these ventures. Using an input-output-based methodology and a unique data set from a successful food hub, we measure net and gross impacts of a policy supporting their development. We estimate a gross output multiplier of 1.75 and an employment multiplier of 2.14. Using customer surveys, we estimate that every $1 increase in final demand for food hub products generates a $0.11 reduction in purchases in other sectors.

Suggested Citation

  • Jablonski, B. B. R. & Schmit, T. M. & Kay, D., 2016. "Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Cost," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(1), pages 143-172, April.
    • Handle: RePEc:cup:agrerw:v:45:y:2016:i:01:p:143-172_00
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    Cited by:

    1. Clark, Jill K. & Jablonski, Becca B.R., 2022. "Managing across boundaries for coordinated local and regional food system policy," Food Policy, Elsevier, vol. 112(C).
    2. Christopher Robinson & Scott Cloutier & Hallie Eakin, 2017. "Examining the Business Case and Models for Sustainable Multifunctional Edible Landscaping Enterprises in the Phoenix Metro Area," Sustainability, MDPI, vol. 9(12), pages 1-28, December.
    3. Becca B. R. Jablonski & Martha Sullins & Dawn Thilmany McFadden, 2019. "Community-Supported Agriculture Marketing Performance: Results from Pilot Market Channel Assessments in Colorado," Sustainability, MDPI, vol. 11(10), pages 1-14, May.
    4. Becca B. R. Jablonski & Michael Carolan & James Hale & Dawn Thilmany McFadden & Erin Love & Libby Christensen & Tabitha Covey & Laura Bellows & Rebecca Cleary & Olaf David & Kevin E. Jablonski & Andre, 2019. "Connecting Urban Food Plans to the Countryside: Leveraging Denver’s Food Vision to Explore Meaningful Rural–Urban Linkages," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    5. Becca B.R. Jablonski & Allison Bauman & Dawn Thilmany, 2021. "Local Food Market Orientation and Labor Intensity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 916-934, September.
    6. Marilyn Sitaker & Jane Kolodinsky & Weiwei Wang & Lisa C. Chase & Julia Van Soelen Kim & Diane Smith & Hans Estrin & Zoe Van Vlaanderen & Lauren Greco, 2020. "Evaluation of Farm Fresh Food Boxes: A Hybrid Alternative Food Network Market Innovation," Sustainability, MDPI, vol. 12(24), pages 1-25, December.
    7. 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.
    8. Victoria Morckel & Kathryn Colasanti, 2018. "Can Farmers’ Markets in Shrinking Cities Contribute to Economic Development? A Case Study from Flint, Michigan," Sustainability, MDPI, vol. 10(6), pages 1-15, May.
    9. Fernianda Rahayu Hermiatin & Yuanita Handayati & Tomy Perdana & Dadan Wardhana, 2022. "Creating Food Value Chain Transformations through Regional Food Hubs: A Review Article," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    10. Gupta, Clare & Jablonski, Becca B.R., 2016. "Farm Impacts of Farm-to-Grocer Sales: The Case of Hawai’i," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-23, November.
    11. Love, Erin & Thilmany McFadden, Dawn D. & Jablonski, Becca B. R. & Bellows, Laura, 2020. "A Baseline Assessment of School Food Spending and Local Procurement: Exploring the Case of CO Hb 19-1132 and Other Public Policies," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304588, Agricultural and Applied Economics Association.
    12. Maureen Stickel & Steven Deller, 2020. "Local Foods and Local Economic Performance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 335-357, June.

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