IDEAS home Printed from https://ideas.repec.org/a/bla/canjag/v64y2016i1p71-88.html
   My bibliography  Save this article

How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference

Author

Listed:
  • Kar H. Lim
  • Wuyang Hu

Abstract

type="main" xml:lang="fr"> Nous avons réalisé, à l'aide de la méthode des choix discrets, un sondage national sur le consentement à payer des consommateurs pour du bœuf local portant la mention de la distance et autres descriptifs sur la provenance. D'après les résultats de notre sondage, la plupart des consommateurs n'ont pas de préférence entre un produit étiqueté « local » et un produit étiqueté « local : dans un rayon de 160 kilomètres », ce qui signifie que la mention dans un rayon de 160 kilomètres correspond à la définition de produit local pour les consommateurs répondants. Les consommateurs sont disposés à payer beaucoup plus cher pour des produits provenant de leur province que pour des produits étiquetés « local ». Ils sont également prêts à payer davantage pour du bœuf provenant d'animaux ayant subi un test de dépistage de l'encéphalopathie spongiforme bovine (ESB) ainsi que pour du bœuf provenant d'animaux nourris à l'herbe plutôt qu'aux grains.

Suggested Citation

  • Kar H. Lim & Wuyang Hu, 2016. "How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 71-88, March.
    • Handle: RePEc:bla:canjag:v:64:y:2016:i:1:p:71-88
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/cjag.12062
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bailey, DeeVon & Robb, James & Checketts, Logan, 2005. "Perspectives on Traceability and BSE Testing in the U.S. Beef Industry," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 20(4), pages 1-5.
    2. Hu, Wuyang & Woods, Timothy A. & Bastin, Sandra, 2009. "Consumer Acceptance and Willingness to Pay for Blueberry Products with Nonconventional Attributes," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(1), pages 1-14, April.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    4. Glynn T. Tonsor & Robert S. Shupp, 2011. "Cheap Talk Scripts and Online Choice Experiments: "Looking Beyond the Mean"," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1015-1031.
    5. McCluskey, Jill J. & Grimsrud, Kristine M. & Ouchi, Hiromi & Wahl, Thomas I., 2005. "Bovine spongiform encephalopathy in Japan: consumers’ food safety perceptions and willingness to pay for tested beef," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 1-13.
    6. David Hensher, 2001. "The valuation of commuter travel time savings for car drivers: evaluating alternative model specifications," Transportation, Springer, vol. 28(2), pages 101-118, May.
    7. Dawn Thilmany & Craig A. Bond & Jennifer K. Bond, 2008. "Going Local: Exploring Consumer Behavior and Motivations for Direct Food Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1303-1309.
    8. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    9. Wuyang Hu & Marvin T. Batte & Timothy Woods & Stan Ernst, 2012. "Consumer preferences for local production and other value-added label claims for a processed food product," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(3), pages 489-510, July.
    10. Harriet Friedmann, 2007. "Scaling up: Bringing public institutions and food service corporations into the project for a local, sustainable food system in Ontario," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(3), pages 389-398, September.
    11. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    12. Erik Meijer & Jan Rouwendal, 2006. "Measuring welfare effects in models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 227-244, March.
    13. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    14. Arne Risa Hole, 2007. "A comparison of approaches to estimating confidence intervals for willingness to pay measures," Health Economics, John Wiley & Sons, Ltd., vol. 16(8), pages 827-840, August.
    15. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    16. Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(3), pages 1-11, December.
    17. Onozaka, Yuko & Nurse, Gretchen & Thilmany, Dawn D., 2010. "Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-6.
    18. Abidoye, Babatunde O. & Bulut, Harun & Lawrence, John D. & Mennecke, Brian & Townsend, Anthony M., 2011. "U.S. Consumers' Valuation of Quality Attributes in Beef Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(1), pages 1-12, February.
    19. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
    20. Nick Winter, 2002. "SURVWGT: Stata module to create and manipulate survey weights," Statistical Software Components S427503, Boston College Department of Economics, revised 11 Feb 2018.
    21. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    22. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    23. Silva, Andres & Nayga, Rodolfo M., Jr. & Campbell, Benjamin L. & Park, John L., 2011. "Revisiting Cheap Talk with New Evidence from a Field Experiment," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-12, August.
    24. Jacquet, Jennifer L. & Pauly, Daniel, 2008. "Trade secrets: Renaming and mislabeling of seafood," Marine Policy, Elsevier, vol. 32(3), pages 309-318, May.
    25. Jordan J. Louviere & Towhidul Islam & Nada Wasi & Deborah Street & Leonie Burgess, 2008. "Designing Discrete Choice Experiments: Do Optimal Designs Come at a Price?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 360-375, March.
    26. Wendy J. Umberger & Dawn D. Thilmany McFadden & Amanda R. Smith, 2009. "Does altruism play a role in determining U.S. consumer preferences and willingness to pay for natural and regionally produced beef?," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 268-285.
    27. Caputo, Vincenzina & Nayga, Rodolfo M. Jr. & Scarpa, Riccardo, 2013. "Food miles or carbon emissions? Exploring labelling preference for food transport footprint with a stated choice study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 1-18.
    28. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    29. Coley, David & Howard, Mark & Winter, Michael, 2009. "Local food, food miles and carbon emissions: A comparison of farm shop and mass distribution approaches," Food Policy, Elsevier, vol. 34(2), pages 150-155, April.
    30. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
    31. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    32. Kar H. Lim & Wuyang Hu & Leigh J. Maynard & Ellen Goddard, 2014. "A Taste for Safer Beef? How Much Does Consumers’ Perceived Risk Influence Willingness to Pay for Country‐of‐Origin Labeled Beef," Agribusiness, John Wiley & Sons, Ltd., vol. 30(1), pages 17-30, January.
    33. Hamilton, Stephen F. & Zilberman, David, 2006. "Green markets, eco-certification, and equilibrium fraud," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 627-644, November.
    34. Benjamin L. Campbell & Saneliso Mhlanga & Isabelle Lesschaeve, 2013. "Perception versus Reality: Canadian Consumer Views of Local and Organic," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 61(4), pages 531-558, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chenyi He & Ruifeng Liu & Zhifeng Gao & Xin Zhao & Charles A. Sims & Rodolfo M. Nayga, 2021. "Does local label bias consumer taste buds and preference? Evidence of a strawberry sensory experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 550-568, July.
    2. Stephane Bergeron & Maurice Doyon & Laurent Muller, 2019. "Strategic response: A key to understand how cheap talk works," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 67(1), pages 75-83, March.
    3. Kar Ho Lim & Michael Vassalos & Michael Reed, 2018. "Point-of-Sale Specific Willingness to Pay for Quality-Differentiated Beef," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    4. Xiaoheng Zhang & Ping Qing & Xiaohua Yu, 2019. "Short supply chain participation and market performance for vegetable farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), pages 282-306, April.
    5. Marine Desorge & Anne Marie Lacroix & Laurent Muller & Charles Pernin & Celia Potdevin & Bernard Ruffieux, 2017. "L'étiquetage au service d'une alimentation durable : le point de vue des consommateurs," Working Papers hal-02786620, HAL.
    6. Rim Lassoued & Janet Music & Sylvain Charlebois & Stuart J. Smyth, 2023. "Canadian Consumers’ Perceptions of Sustainability of Food Innovations," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    7. Wenjing Nie & David Abler & Liqun Zhu & Taiping Li & Guanghua Lin, 2018. "Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    8. Santeramo, Fabio Gaetano & Lamonaca, Emilia, 2020. "Objective risk and subjective risk: The role of information in food supply chains," MPRA Paper 104515, University Library of Munich, Germany.
    9. Izabela Kwil & Katarzyna Piwowar-Sulej & Małgorzata Krzywonos, 2020. "Local Entrepreneurship in the Context of Food Production: A Review," Sustainability, MDPI, vol. 12(1), pages 1-21, January.
    10. Tongzhe Li & Kent D. Messer & Alisher Mamadzhanov & Jill J. McCluskey, 2020. "Preferences for local food: Tourists versus local residents," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 429-444, December.
    11. Kumar, Sushant & Murphy, Mikko & Talwar, Shalini & Kaur, Puneet & Dhir, Amandeep, 2021. "What drives brand love and purchase intentions toward the local food distribution system? A study of social media-based REKO (fair consumption) groups," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    12. Lim, Kar H. & Hu, Wuyang & Nayga, Rodolfo M., Jr., 2021. "Consumer Preference for Grass-Fed Beef: A Case of Food Safety Halo Effect," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(3), September.
    13. Xiao Dong & H. Allen Klaiber & Zoë Plakias, 2023. "I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 51-64, January.
    14. Susan (Sixue) Jia, 2021. "Local Food Campaign in a Globalization Context: A Systematic Review," Sustainability, MDPI, vol. 13(13), pages 1-11, July.
    15. Kar Ho Lim & Wuyang Hu, 2023. "Contextual reference price in choice experiments," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1288-1306, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chenyi He & Ruifeng Liu & Zhifeng Gao & Xin Zhao & Charles A. Sims & Rodolfo M. Nayga, 2021. "Does local label bias consumer taste buds and preference? Evidence of a strawberry sensory experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 550-568, July.
    2. Printezis, Iryna & Grebitus, Carola, 2018. "Marketing Channels for Local Food," Ecological Economics, Elsevier, vol. 152(C), pages 161-171.
    3. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    4. Azucena Gracia, 2014. "Consumers’ preferences for a local food product: a real choice experiment," Empirical Economics, Springer, vol. 47(1), pages 111-128, August.
    5. De Bauw, Michiel & Franssens, Samuel & Vranken, Liesbet, 2022. "Trading off environmental attributes in food consumption choices," Food Policy, Elsevier, vol. 112(C).
    6. Jianhua Wang & Jiaye Ge & Yuting Ma, 2018. "Urban Chinese Consumers’ Willingness to Pay for Pork with Certified Labels: A Discrete Choice Experiment," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    7. Liu, Ruifeng & ,, 2021. "What We Can Learn from the Interactions of Food Traceable Attributes? a Case Study of Fuji Apple in China," 2021 Conference, August 17-31, 2021, Virtual 315916, International Association of Agricultural Economists.
    8. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    9. Shi, Wei & Halstead, John & Huang, Ju-Chin, 2016. "Consumers’ Willingness to Pay for Locally Grown Produce: Comparison of New Hampshire and Massachusetts Results," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236109, Agricultural and Applied Economics Association.
    10. Elisa Giampietri & Dieter B. A. Koemle & Xiaohua Yu & Adele Finco, 2016. "Consumers’ Sense of Farmers’ Markets: Tasting Sustainability or Just Purchasing Food?," Sustainability, MDPI, vol. 8(11), pages 1-14, November.
    11. Shijun Gao & Carola Grebitus & Karen L. DeLong, 2024. "Explaining consumer willingness to pay for country‐of‐origin labeling with ethnocentrism, country image, and product image: Examples from China's beef market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(2), pages 149-166, June.
    12. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    13. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    14. Ozge Dinc‐Cavlak & Ozlem Ozdemir, 2021. "Comparing the willingness to pay through three elicitation mechanisms: An experimental evidence for organic egg product," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 782-803, October.
    15. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    16. Van Wezemael, Lynn & Caputo, Vincenzina & Nayga, Rodolfo M. & Chryssochoidis, George & Verbeke, Wim, 2014. "European consumer preferences for beef with nutrition and health claims: A multi-country investigation using discrete choice experiments," Food Policy, Elsevier, vol. 44(C), pages 167-176.
    17. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    18. Illichmann, R. & Abdulai, A., 2014. "Analysis of Consumer Preferences and Wilingness-To-Pay for Organic Food Products in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    19. Mohammed H. Alemu & Søren Bøye Olsen & Suzanne E. Vedel & John Kinyuru & Kennedy O. Pambo, 2016. "Integrating sensory evaluations in incentivized discrete choice experiments to assess consumer demand for cricket flour buns in Kenya," IFRO Working Paper 2016/02, University of Copenhagen, Department of Food and Resource Economics.
    20. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:canjag:v:64:y:2016:i:1:p:71-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/caefmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.