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Organic Food and Human Health: Instrumental Variables Evidence

Author

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  • Heinz Welsch

    (University of Oldenburg, Department of Economics)

Abstract

Organic food markets in developed countries have been rapidly expanding in recent years. Though expected health benefits are a major motive for buying organic food (OF), the health effects of consuming OF are uncertain. This study uses survey data from Germany, 2007, to explore the causal relationship between OF consumption and self-rated health status. While it finds strong and statistically significant relationships between health and indicators of the intensity and duration of OF consumption, these relationships vanish when OF consumption is instrumented by respondents’ assessment of the necessity of renewable energy. Since the instrument satisfies usual validity standards, these findings suggest that the OF-health relationship may be spurious due to common unobserved factors, in particular a health-oriented lifestyle.

Suggested Citation

  • Heinz Welsch, 2012. "Organic Food and Human Health: Instrumental Variables Evidence," Working Papers V-349-12, University of Oldenburg, Department of Economics, revised Oct 2012.
    • Handle: RePEc:old:dpaper:349
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    File URL: http://www.vwl.uni-oldenburg.de/download/V-349-12.pdf
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    References listed on IDEAS

    as
    1. Braakmann, Nils, 2011. "The causal relationship between education, health and health related behaviour: Evidence from a natural experiment in England," Journal of Health Economics, Elsevier, vol. 30(4), pages 753-763, July.
    2. Wier, Mette & O'Doherty Jensen, Katherine & Andersen, Laura Mørch & Millock, Katrin, 2008. "The character of demand in mature organic food markets: Great Britain and Denmark compared," Food Policy, Elsevier, vol. 33(5), pages 406-421, October.
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    Cited by:

    1. Adelina Gschwandtner & Sarah Jewell & Uma S. Kambhampati, 2022. "Lifestyle and Life Satisfaction: The Role of Delayed Gratification," Journal of Happiness Studies, Springer, vol. 23(3), pages 1043-1072, March.
    2. Gschwandtner, Adelina & Jewell, Sarah L. & Kambhampati, Uma, 2015. "On the Relationship between Lifestyle and Happiness in the UK," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204199, Agricultural Economics Society.
    3. Adelina Gschwandtner & Michael Burton, 2017. "The Willingness to Pay for Organic Attributes in the UK," Studies in Economics 1702, School of Economics, University of Kent.

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    More about this item

    Keywords

    health; food; consumption; organic agriculture;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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