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Distance isn’t dead : An empirical evaluation of food miles-based preference changes

Author

Listed:
  • Ballingall, John

    (New Zealand Institute of Economic Research)

  • Winchester, Niven

    (University of Otago)

Abstract

Food miles measure the distance food travels to reach consumers’ plates. Although substituting local food for imported produce will not necessarily reduce greenhousegas (GHG) emissions, the food miles movementis an intuitively appealing idea toconsumers and supported by import-competing producers. We investigate the economic implications of food miles-induced preference changes in Europe using a global, economy-wide model. We observe large welfare losses for New Zealand and several Sub-Saharan African nations.This suggests that food miles campaigns will increase global inequality without necessarily improving environmental outcomes. We then consider the implications of our results for New Zealand businesses and government agencies. We conclude that there is an ongoing requirement for careful monitoring of offshore consumer trends and that New Zealand firms need to demonstrate their sustainability credentials to avoid suffering negative demand shocks.

Suggested Citation

  • Ballingall, John & Winchester, Niven, 2009. "Distance isn’t dead : An empirical evaluation of food miles-based preference changes," NZIER Working Paper 2009/1, New Zealand Institute of Economic Research.
  • Handle: RePEc:ris:nzierw:2009_001
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    References listed on IDEAS

    as
    1. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
    2. Thierry Mayer & Keith Head, 2002. "Illusory Border Effects: Distance Mismeasurement Inflates Estimates of Home Bias in Trade," Working Papers 2002-01, CEPII research center.
    3. Els Wynen, 2009. "No Through Road: The Limitations of Food Miles," Working Papers id:1942, eSocialSciences.
    4. Joseph Francis Francois & Ganeshan Wignaraja, 2008. "Economic Implications of Deeper Asian Integration," Economics working papers 2008-13, Department of Economics, Johannes Kepler University Linz, Austria.
    5. Pretty, J.N. & Ball, A.S. & Lang, T. & Morison, J.I.L., 2005. "Farm costs and food miles: An assessment of the full cost of the UK weekly food basket," Food Policy, Elsevier, vol. 30(1), pages 1-19, February.
    6. Francois Joseph F & Wignaraja Ganeshan, 2008. "Economic Implications of Asian Integration," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-48, September.
    7. Niven Winchester, 2006. "Liberating middle earth: How will changes in the global trading system affect New Zealand?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 40(1), pages 45-79.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Kemp, Katherine & Insch, Andrea & Holdsworth, David K. & Knight, John G., 2010. "Food miles: Do UK consumers actually care?," Food Policy, Elsevier, vol. 35(6), pages 504-513, December.

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    More about this item

    Keywords

    food miles; non-tariff borders; trade protection;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment

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