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Organic Apple Production in Washington State: An Input-Output Analysis

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Author Info

  • Pon Nya Mon

    (Washington State University)

  • David W. Holland

    (Washington State University)

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    Abstract

    This paper provides an Input-Output (I/O) based economic impact analysis for organic apple production in Washington State. The intent is to compare the economic “ripple” effect of organic production with conventional production. The analysis is presented in two scenarios: first we compare the economic impact of organic versus conventional apple production for a l demand increase of one million US$ as measured in sales. The second analysis looks at the economic impact of organic and conventional apple production in terms of given unit of land (405 hectares of production). Both state-wide output (sales) and employment (jobs) impacts are estimated under each scenario. Results are presented in terms of direct, indirect, and induced economic impact. Organic apple production was more labor intensive than conventional production. While, the organic apple sector used less intermediate inputs per unit of output than conventional production it also produced higher returns to labor and capital. As a result, the indirect economic effect was lower for the organic sector than the conventional sector, but the induced economic effect was higher for organic. Given the organic price premium, the economic impact (direct, indirect and induced) was larger for organic apple production than conventional apple production.

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    File URL: http://128.118.178.162/eps/othr/papers/0503/0503009.pdf
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    Bibliographic Info

    Paper provided by EconWPA in its series Others with number 0503009.

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    Length: 26 pages
    Date of creation: 22 Mar 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpot:0503009

    Note: Type of Document - pdf; pages: 26
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    Web page: http://128.118.178.162

    Related research

    Keywords: conventional and organic apple production; multiplier effects; output; and employment effects; IMPLAN;

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    1. Maki, Wilbur R. & Olson, Douglas C. & Lindall, Scott A. & Senf, David R. & Schallau, Con H., 1989. "Implan Modeling Applications In State And Regional Development," Staff Papers 13896, University of Minnesota, Department of Applied Economics.
    2. David Holland & Eugenio Figueroa B. & John Gilbert, 2001. "The Role of agriculture and food processing in the chilean economy: results from an input-output analysis," Estudios de Economia, University of Chile, Department of Economics, vol. 28(2 Year 20), pages 293-308, December.
    3. Heinz Kurz & Neri Salvadori, 2000. "'Classical' Roots of Input-Output Analysis: A Short Account of its Long Prehistory," Economic Systems Research, Taylor & Francis Journals, vol. 12(2), pages 153-179.
    4. Lin, Tun & Halbrendt, Catherine K. & Liang, Chyi-Lyi (Kathleen) & Wood, Nancy, 1999. "The Impact Of The Tourism Sector On The Vermont Economy: The Input-Output Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21618, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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