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The demand for organic foods in the South of Italy: A discrete choice model

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  • Gracia, Azucena
  • de Magistris, Tiziana

Abstract

This paper analyses organic food consumer's demand that can help advising on implementing organic food policies at European level or, for a particular European country. In particular, it investigates the main factors explaining organic food demand in the South of Italy. Following the Lancaster consumer's demand theory we assume that consumer's utility depends on product characteristics instead of the product itself. Thus, consumers will choose the product (organic versus conventional) that possesses the combination of attributes that maximises its utility. Consumer's choice for organic foods is analysed within the random utility discrete choice model and a bivariate probit model has been specified. The data were collected through a questionnaire conducted in the Italian region of Campania (Naples) in 2003. Findings indicate that economic factors are still factors limiting the growth of organic demand in Europe. Moreover, the consumers' perceived benefits of organic food (environmental and health) are factors promoting organic food demand. In addition, greater information on organic food products is crucial to expand its demand in the South of Italy because this information will increase the consumer's organic knowledge. Then, higher organic knowledge will increase the probability to buy organic foods and, to a larger extent, the level of consumption among existing consumers.

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  • Gracia, Azucena & de Magistris, Tiziana, 2008. "The demand for organic foods in the South of Italy: A discrete choice model," Food Policy, Elsevier, vol. 33(5), pages 386-396, October.
  • Handle: RePEc:eee:jfpoli:v:33:y:2008:i:5:p:386-396
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    Cited by:

    1. Welsch, Heinz & Kühling, Jan, 2009. "Determinants of pro-environmental consumption: The role of reference groups and routine behavior," Ecological Economics, Elsevier, vol. 69(1), pages 166-176, November.
    2. Chang, Jae Bong & Lusk, Jayson L., 2009. "Fairness and food choice," Food Policy, Elsevier, vol. 34(6), pages 483-491, December.
    3. Caputo, Vincenzina & Aprile, Maria Carmela & Nayga, Rodolfo M., Jr., 2011. "Consumers’ Valuation for European food quality labels: Importance of Label Information Provision," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114324, European Association of Agricultural Economists.
    4. Vasiliki Fourmouzi & Margarita Genius & Peter Midmore, 2012. "The Demand for Organic and Conventional Produce in London, UK: A System Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 677-693, September.
    5. Kasteridis, Panagiotis & Yen, Steven, 2012. "U.S. demand for organic and conventional vegetables: a Bayesian censored system approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), September.
    6. Sporleder, Eva M. & Kayser, Maike & Friedrich, Nina & Theuvsen, Ludwig, 2014. "Consumer Preferences for Sustainably Produced Bananas: A Discrete Choice Experiment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 17(1).
    7. Giovanna Sacchi & Vincenzina Caputo & Rodolfo M. Nayga, 2015. "Alternative Labeling Programs and Purchasing Behavior toward Organic Foods: The Case of the Participatory Guarantee Systems in Brazil," Sustainability, MDPI, Open Access Journal, vol. 7(6), pages 1-20, June.
    8. repec:bla:jconsa:v:51:y:2017:i:1:p:211-251 is not listed on IDEAS
    9. Ngoc, Pham Thi & Meuwissen, Miranda & Le, Tru & Bosma, Roel & Verreth, Johan & Lansink, Alfons G.J.M., 2015. "Adoption of Recirculating Aquaculture Systems in Pangasius Farms: A Choice Experiment," 2015 Conference, August 9-14, 2015, Milan, Italy 212632, International Association of Agricultural Economists.
    10. Vermeulen, Hester & Bienabe, Estelle, 2010. "The quality turn in South Africa: insights from a comprehensive investigation into the food quality behaviours, perceptions and knowledge of South African consumers with a focus on middle and upper so," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96194, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
    11. Stranieri, S. & Ricci, E. & Banterle, A., 2016. "The Theory of Planned Behaviour and Food Choices: The Case of Sustainable pre-packed Salad," 2016 International European Forum, February 15-19, 2016, Innsbruck-Igls, Austria 244475, International European Forum on System Dynamics and Innovation in Food Networks.
    12. Grebitus, Carola & Dumortier, Jerome, 2013. "How much of the error term is explained by psychometric variables? The example of organic produce demand," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150193, Agricultural and Applied Economics Association.
    13. Koistinen, Laura & Pouta, Eija & Heikkila, Jaakko & Forsman-Hugg, Sari & Kotro, Jaana & Makela, Jarmo & Niva, M., 2011. "Impact of meat type, methods of production, fat content, price and carbon footprint information on meat choice," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114710, European Association of Agricultural Economists.
    14. Liu, Qing & Zhou, Jiehong & Yan, Zhen, 2016. "Consumers' Preferences and Motives for Pro-environment Purchasing Behavior: An Empirical Analysis Based on the Choice Experiment," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236261, Agricultural and Applied Economics Association.
    15. Christopher Gan & ZhiYou Chang & Minh Chau Tran & David A. Cohen, 2016. "Consumer Attitudes toward the Purchase of Organic Products in China," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 15(2), pages 117-144, December.
    16. Qing Liu & Zhen Yan & Jiehong Zhou, 2017. "Consumer Choices and Motives for Eco-Labeled Products in China: An Empirical Analysis Based on the Choice Experiment," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-12, February.
    17. Irandoust, Manuchehr, 3. "Modelling Consumers' Demand For Organic Food Products: The Swedish Experience," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(3).
    18. Yu, Xiaohua & Gao, Zhifeng & Zeng, Yinchu, 2014. "Willingness to pay for the “Green Food” in China," Food Policy, Elsevier, vol. 45(C), pages 80-87.

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