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Demand for Organic and Conventional Fruits

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  • Lin, Biing-Hwan
  • Yen, Steven T.
  • Huang, Chung L.

Abstract

We examine consumer demand for organic and conventional fruits by estimating a censored demand system, using Nielsen's Homescan data. Sociodemographic characteristics and income are found to be significant factors of organic fruit consumption. Consumers are responsive to own-price changes in selected organic fruits, while the own-price elasticities for conventional fruits are much smaller. Asymmetric cross-price effects are found between organic and conventional fruits, suggesting that a change in relative prices will more likely cause consumers of conventional fruits to "cross-over" to organic fruits, while the reverse is less likely to happen such that organic consumers will "revert" to conventional fruits.

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File URL: http://purl.umn.edu/6440
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6440.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6440

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Related research

Keywords: organic fruit; Homescan data; censored demand system; two-step estimation; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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