Demand for Organic and Conventional Fruits
AbstractWe 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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Bibliographic InfoPaper 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.
Date of creation: 2008
Date of revision:
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organic fruit; Homescan data; censored demand system; two-step estimation; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-18 (All new papers)
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