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U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price

Author

Listed:
  • Biing-Hwan Lin

    () (Economic Research Service, US Department of Agriculture, 1800 M Street NW, Washington, DC, 20036-5831, USA)

  • Steven T. Yen

    () (Department of Agricultural Economics, The University of Tennessee, 2621 Morgan Circle, Knoxville, TN, 37996-4518, USA)

  • Chung L. Huang

    () (Department of Agricultural and Applied Economics, 313-E Conner Hall, University of Georgia, Athens, GA, 30602-7509, USA)

  • Travis A. Smith

    () (Economic Research Service, US Department of Agriculture, 1800 M Street NW, Washington, DC, 20036-5831, USA)

Abstract

Using retail purchase data reported by Nielsen’s Homescan panel this study investigates the U.S. demand for organic and conventional fresh fruits. The study fills an important research void by estimating the much needed income and price elasticities for organic and conventional fruits utilizing a censored demand approach. Household income is found to affect organic fruit consumption. Consumers are more responsive to price of organic fruits than to price of conventional fruits. Cross-price effects suggest that a change in relative prices will more likely induce consumers to “cross-over” from buying conventional fruits to buying organic fruits, while it is less likely that organic consumers will “revert” to buying conventional fruits.

Suggested Citation

  • Biing-Hwan Lin & Steven T. Yen & Chung L. Huang & Travis A. Smith, 2009. "U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price," Sustainability, MDPI, Open Access Journal, vol. 1(3), pages 1-15, August.
  • Handle: RePEc:gam:jsusta:v:1:y:2009:i:3:p:464-478:d:5548
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    Citations

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    Cited by:

    1. Schott, Lenna & Bernard, John, 2015. "Comparing Consumer's WIllingness to Pay for Conventional, Non-Certified Organic and Organic Milk from Small and Large Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 0(Number 3), pages 1-20, November.
    2. 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.
    3. 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. 0(Issue 3), pages 1-21.
    4. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Willingness-to-pay for natural, organic, and conventional foods: The effects of information and meaningful labels," Food Policy, Elsevier, vol. 68(C), pages 214-232.
    5. Filippo Sgroi & Matteo Candela & Anna Maria Di Trapani & Mario Foderà & Riccardo Squatrito & Riccardo Testa & Salvatore Tudisca, 2015. "Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards," Sustainability, MDPI, Open Access Journal, vol. 7(1), pages 1-15, January.
    6. Denver, Sigrid & Christensen, Tove, 2010. "Is Organic Food A Quality Attribute Or A Product Category?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116389, European Association of Agricultural Economists.

    More about this item

    Keywords

    National Organic Standards; Nielsen Homescan; organic fruit demand; price elasticities; censored demand system;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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