IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v98y2021ics0306919220300816.html
   My bibliography  Save this article

The effect of sell-by dates on purchase volume and food waste

Author

Listed:
  • Yu, Yang
  • Jaenicke, Edward C.

Abstract

This article constructs a theoretical model of rational food waste and analyzes how an extension of a food product’s sell-by date affects households’ decisions of purchase volume and food waste. We then use the elimination of New York City’s regulation of sell-by dates for pasteurized milk products as an empirical case and examine whether the city’s new policy effectively reduces food waste and improves consumer welfare. Our results suggest that the new policy reduces purchase volume by about 10%. Both theoretically and empirically, we show that while the observed quantity declines, the actual consumption of milk increases, implying a reduction in food waste by more than 10%. Furthermore, we prove that this consumer welfare-improving pattern is generalizable to all types of perishable food with price-inelastic demand.

Suggested Citation

  • Yu, Yang & Jaenicke, Edward C., 2021. "The effect of sell-by dates on purchase volume and food waste," Food Policy, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jfpoli:v:98:y:2021:i:c:s0306919220300816
    DOI: 10.1016/j.foodpol.2020.101879
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919220300816
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2020.101879?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    2. Zhijun Chen & Patrick Rey, 2012. "Loss Leading as an Exploitative Practice," American Economic Review, American Economic Association, vol. 102(7), pages 3462-3482, December.
    3. Sarah Bohn & Magnus Lofstrom & Steven Raphael, 2014. "Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population?," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 258-269, May.
    4. Jayson L. Lusk & Brenna Ellison, 2017. "A note on modelling household food waste behaviour," Applied Economics Letters, Taylor & Francis Journals, vol. 24(16), pages 1199-1202, September.
    5. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    6. Nikolay Doudchenko & Guido W. Imbens, 2016. "Balancing, Regression, Difference-In-Differences and Synthetic Control Methods: A Synthesis," NBER Working Papers 22791, National Bureau of Economic Research, Inc.
    7. Buzby, Jean C. & Farah-Wells, Hodan & Hyman, Jeffrey, 2014. "The Estimated Amount, Value, and Calories of Postharvest Food Losses at the Retail and Consumer Levels in the United States," Economic Information Bulletin 164262, United States Department of Agriculture, Economic Research Service.
    8. Stephen F Hamilton & Timothy J Richards, 2019. "Food Policy and Household Food Waste," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 600-614.
    9. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    10. Yang Yu & Edward C. Jaenicke, 2020. "Estimating Food Waste as Household Production Inefficiency," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 525-547, March.
    11. Buzby, Jean C. & Wells, Hodan Farah & Axtman, Bruce & Mickey, Jana, 2009. "Supermarket Loss Estimates for Fresh Fruit, Vegetables, Meat, Poultry, and Seafood and Their Use in the ERS Loss-Adjusted Food Availability Data," Economic Information Bulletin 58313, United States Department of Agriculture, Economic Research Service.
    12. Muth, Mary K. & Karns, Shawn A. & Nielsen, Samara Joy & Buzby, Jean C. & Wells, Hodan Farah, 2011. "Consumer-Level Food Loss Estimates and Their Use in the ERS Loss- Adjusted Food Availability Data," Technical Bulletins 184307, United States Department of Agriculture, Economic Research Service.
    13. Dan Chazan & Shmuel Gal, 1977. "A Markovian Model for a Perishable Product Inventory," Management Science, INFORMS, vol. 23(5), pages 512-521, January.
    14. Biing-Hwan Lin & Steven T. Yen & Chung L. Huang & Travis A. Smith, 2009. "U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price," Sustainability, MDPI, vol. 1(3), pages 1-15, August.
    15. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    16. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    17. van Donselaar, Karel H. & Broekmeulen, Rob A.C.M., 2012. "Approximations for the relative outdating of perishable products by combining stochastic modeling, simulation and regression modeling," International Journal of Production Economics, Elsevier, vol. 140(2), pages 660-669.
    18. Danyi Qi & Brian E Roe, 2016. "Household Food Waste: Multivariate Regression and Principal Components Analyses of Awareness and Attitudes among U.S. Consumers," PLOS ONE, Public Library of Science, vol. 11(7), pages 1-19, July.
    19. Marc F. Bellemare & Metin Çakir & Hikaru Hanawa Peterson & Lindsey Novak & Jeta Rudi, 2017. "On the Measurement of Food Waste," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(5), pages 1148-1158.
    20. Duan, Qinglin & Liao, T. Warren, 2013. "A new age-based replenishment policy for supply chain inventory optimization of highly perishable products," International Journal of Production Economics, Elsevier, vol. 145(2), pages 658-671.
    21. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    22. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June.
    23. Justin P. Johnson, 2017. "Unplanned Purchases and Retail Competition," American Economic Review, American Economic Association, vol. 107(3), pages 931-965, March.
    24. Brenna Ellison & Jayson L Lusk, 2018. "Examining Household Food Waste Decisions: A Vignette Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 40(4), pages 613-631, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. D’Amato, Alessio & Goeschl, Timo & Lorè, Luisa & Zoli, Mariangela, 2023. "True to type? EU-style date marking and the valuation of perishable food," Food Policy, Elsevier, vol. 114(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    2. Victor Chernozhukov & Kaspar Wüthrich & Yinchu Zhu, 2021. "An Exact and Robust Conformal Inference Method for Counterfactual and Synthetic Controls," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1849-1864, October.
    3. Dmitry Arkhangelsky & Guido Imbens, 2023. "Causal Models for Longitudinal and Panel Data: A Survey," Papers 2311.15458, arXiv.org, revised Mar 2024.
    4. Yu, Yang & Jaenicke, Edward C., 2018. "The Effect of Sell-By Dates on Purchase Volume and Food Waste: A Case of New York City’s Sell-By Regulation of Milk," 2018 Annual Meeting, August 5-7, Washington, D.C. 273862, Agricultural and Applied Economics Association.
    5. Victor Chernozhukov & Kaspar Wüthrich & Yinchu Zhu, 2019. "Inference on average treatment effects in aggregate panel data settings," CeMMAP working papers CWP32/19, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    6. Victor Chernozhukov & Kaspar Wuthrich & Yinchu Zhu, 2018. "A $t$-test for synthetic controls," Papers 1812.10820, arXiv.org, revised Jan 2024.
    7. Bidisha Lahiri & Anurag Deb, 2022. "Impact of the Indian “demonetization” policy on its export performance," Empirical Economics, Springer, vol. 62(6), pages 2799-2825, June.
    8. Benjamin Scharadin & Yang Yu & Edward C. Jaenicke, 2021. "Household time activities, food waste, and diet quality: the impact of non-marginal changes due to COVID-19," Review of Economics of the Household, Springer, vol. 19(2), pages 399-428, June.
    9. Yang Yu & Edward C. Jaenicke, 2020. "Estimating Food Waste as Household Production Inefficiency," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 525-547, March.
    10. Myoung-jae Lee & Yasuyuki Sawada, 2020. "Review on Difference in Differences," Korean Economic Review, Korean Economic Association, vol. 36, pages 135-173.
    11. Jayson L. Lusk & Brenna Ellison, 2020. "Economics of household food waste," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 379-386, December.
    12. Daniel Albalate & Germà Bel & Ferran A. Mazaira-Font, 2020. "Ensuring Stability, Accuracy and Meaningfulness in Synthetic Control Methods: The Regularized SHAP-Distance Method," IREA Working Papers 202005, University of Barcelona, Research Institute of Applied Economics, revised Apr 2020.
    13. Niklas Potrafke & Fabian Ruthardt & Kaspar Wuthrich, 2020. "Protectionism and economic growth: Causal evidence from the first era of globalization," Papers 2010.02378, arXiv.org, revised Mar 2022.
    14. Billy Ferguson & Brad Ross, 2020. "Assessing the Sensitivity of Synthetic Control Treatment Effect Estimates to Misspecification Error," Papers 2012.15367, arXiv.org, revised Feb 2021.
    15. Lea Bottmer & Guido Imbens & Jann Spiess & Merrill Warnick, 2021. "A Design-Based Perspective on Synthetic Control Methods," Papers 2101.09398, arXiv.org, revised Jul 2023.
    16. Bibek Adhikari & James Alm, 2016. "Evaluating the Economic Effects of Flat Tax Reforms Using Synthetic Control Methods," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 437-463, October.
    17. Becker, Maike & Pfeifer, Gregor & Schweikert, Karsten, 2021. "Price Effects of the Austrian Fuel Price Fixing Act: A Synthetic Control Study," Energy Economics, Elsevier, vol. 97(C).
    18. Yi‐Ting Chen, 2020. "A distributional synthetic control method for policy evaluation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(5), pages 505-525, August.
    19. Jason Poulos & Shuxi Zeng, 2021. "RNN‐based counterfactual prediction, with an application to homestead policy and public schooling," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 70(4), pages 1124-1139, August.
    20. Brenna Ellison & Linlin Fan & Norbert L.W. Wilson, 2022. "Is it more convenient to waste? Trade‐offs between grocery shopping and waste behaviors," Agricultural Economics, International Association of Agricultural Economists, vol. 53(S1), pages 75-89, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:98:y:2021:i:c:s0306919220300816. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.