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Consumer willingness to pay for locally grown products: the case of South Carolina

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  • Carlos E. Carpio

    (Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313)

  • Olga Isengildina-Massa

    (Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313)

Abstract

A contingent valuation framework is used to evaluate South Carolina consumers' willingness to pay for the “locally grown” characteristic (defined here as South Carolina grown) in produce and animal products and to identify the sociodemographic characteristics affecting consumer preferences for this characteristic. Findings show that South Carolina consumers are willing to pay an average premium of 27% for local produce and 23% for local animal products. Premiums for local products are influenced by age, gender, and income as well as by perceived product quality, a desire to support the local economy, patronage of farmers markets, and consumer ties to agriculture. [JEL Categories: D12, Q13]. © 2009 Wiley Periodicals, Inc.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 25 (2009)
Issue (Month): 3 ()
Pages: 412-426

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Handle: RePEc:wly:agribz:v:25:y:2009:i:3:p:412-426

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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Cited by:
  1. Perla, Joseph M. & Rickard, Bradley J. & Schmit, Todd M., 2014. "Looking for Locapours: Using Zagat Survey Data to Examine Restaurant Demand for Local Wine," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), April.
  2. Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
  3. Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
  4. Carroll, Kathryn A. & Bernard, John C. & Pesek, John D. Jr., 2013. "Consumer Preferences for Tomatoes: The Influence of Local, Organic, and State Program Promotions by Purchasing Venue," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
  5. Pascucci, Stefano & Cicatiello, Clara & Franco, Silvio & Pancino, Barbara & Davide, Marino, 2011. "Back to the Future? Understanding Change in Food Habits of Farmers' Market Customers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 14(4).
  6. Susan Geertshuis & Otto Krickl, 2013. "Value Judgements and Continuing Education," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 2(1), pages 123-141.
  7. Tempesta, Tiziano & Vecchiato, Daniel & Djumboung, Danièle Aurelie & Chinazzi, Gianluca, 2. "An analysis of the potential effects of the modification of the Prosecco Protected Designation of Origin: a choice experiment," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L’Informatore Agrario, issue 2.
  8. Jean-Sauveur Ay & Raja Chakir & Stephan Marette, 2014. "Does living close to a vineyard increase the willingness-to-pay for organic and local wine?," Working Papers 2014/03, INRA, Economie Publique.
  9. Anabela Botelho & Isabel Dinis & Lina Sofia Lourenço-Gomes & Jorge Moreira & Lígia M.Costa Pinto, 2014. "Consumers’ valuation of national versus foreign varieties of tomatoes: results of a contingent valuation study in Portugal," NIMA Working Papers 56, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  10. Curtis, Kynda R. & Gumirakiza, J. Dominique & Bosworth, Ryan, 2014. "Consumer Preferences and Willingness to Pay for Multi-Labeled Produce at Farmers' Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(1), March.
  11. Zapata, Samuel D. & Carpio, Carlos E., 2012. "The Theoretical Structure of Producer Willingness to Pay Estimates," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123434, Agricultural and Applied Economics Association.
  12. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
  13. Perla, Joseph M. & Rickard, Bradley J. & Schmit, Todd M., 2013. "Do Restaurants Cater to Locapours? Using Zagat Survey Data to Examine Factors that Influence Wine List Selections," Working Papers 164709, American Association of Wine Economists.
  14. Li, Minghao & Wang, Qingbin & Kolodinsky, Jane M., 2012. "Estimating the Optimal Premium Rates for Credential Food Attributes: A Case Study in the Northeast United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.

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