IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v25y2009i3p412-426.html
   My bibliography  Save this article

Consumer willingness to pay for locally grown products: the case of South Carolina

Author

Listed:
  • Carlos E. Carpio

    (Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313)

  • Olga Isengildina-Massa

    (Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313)

Abstract

A contingent valuation framework is used to evaluate South Carolina consumers' willingness to pay for the “locally grown” characteristic (defined here as South Carolina grown) in produce and animal products and to identify the sociodemographic characteristics affecting consumer preferences for this characteristic. Findings show that South Carolina consumers are willing to pay an average premium of 27% for local produce and 23% for local animal products. Premiums for local products are influenced by age, gender, and income as well as by perceived product quality, a desire to support the local economy, patronage of farmers markets, and consumer ties to agriculture. [JEL Categories: D12, Q13]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Carlos E. Carpio & Olga Isengildina-Massa, 2009. "Consumer willingness to pay for locally grown products: the case of South Carolina," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
    • Handle: RePEc:wly:agribz:v:25:y:2009:i:3:p:412-426
    DOI: 10.1002/agr.20210
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20210
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.20210?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Giraud, Kelly L. & Bond, Craig A. & Bond, Jennifer Keeling, 2005. "Consumer Preferences for Locally Made Specialty Food Products Across Northern New England," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-13, October.
    2. Paul M. Patterson & Hans Olofsson & Timothy J. Richards & Sharon Sass, 1999. "An empirical analysis of state agricultural product promotions: A case study on Arizona Grown," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 179-196.
    3. Nayga, Rodolfo M., Jr., 1995. "Determinants Of U.S. Household Expenditures On Fruit And Vegetables: A Note And Update," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-7, December.
    4. Riccardo Scarpa & George Philippidis & Fiorenza Spalatro, 2005. "Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 329-349.
    5. Govindasamy, Ramu & Zurbriggen, Marta & Italia, John & Adelaja, Adesoji O. & Nitzsche, Peter & VanVranken, Richard, 1998. "Farmers Markets: Consumer Trends, Preferences, and Characteristics," P Series 36722, Rutgers University, Department of Agricultural, Food and Resource Economics.
    6. repec:cup:jagaec:v:40:y:2008:i:1:p:253-265_5 is not listed on IDEAS
    7. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    8. Hughes, David W. & Brown, Cheryl & Miller, Stacy & McConnell, Tom, 2008. "Evaluating the Economic Impact of Farmers' Markets Using an Opportunity Cost Framework," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 253-265, April.
    9. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    10. 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.
    11. Jekanowski, Mark D. & Williams, Daniel R. & Schiek, William A., 2000. "Consumers’ Willingness to Purchase Locally Produced Agricultural Products: An Analysis of an Indiana Survey," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 43-53, April.
    12. repec:ags:joaaec:v:34:y:2002:i:3:p:477-487 is not listed on IDEAS
    13. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    14. Govindasamy, Ramu & Schilling, Brian J. & Sullivan, Kevin P. & Turvey, Calum G. & Brown, Logan & Puduri, Venkata S., 2004. "Returns to the Jersey Fresh Promotional Program: The Impacts of Promotional Expenditures on Farm Cash Receipts in New Jersey," P Series 36728, Rutgers University, Department of Agricultural, Food and Resource Economics.
    15. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    16. Eastwood, David B. & Brooker, John R. & Orr, Robert H., 1987. "Consumer Preferences for Local Versus Out-Of-State Grown Selected Fresh Produce: The Case of Knoxville, Tennessee," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(2), pages 183-194, December.
    17. Eastwood, David B. & Brooker, John R. & Orr, Robert H., 1987. "Consumer Preferences For Local Versus Out-Of-State Grown Selected Fresh Produce: The Case Of Knoxville, Tennessee," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-12, December.
    18. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(3), pages 701-719, December.
    19. 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.
    20. Jekanowski, Mark D. & Williams, Daniel R., II & Schiek, William A., 2000. "Consumers' Willingness To Purchase Locally Produced Agricultural Products: An Analysis Of An Indiana Survey," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), pages 1-11, April.
    21. Giraud, Kelly L. & Bond, Craig A. & Bond, Jennifer J., 2005. "Consumer Preferences for Locally Made Specialty Food Products Across Northern New England," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 204-216, October.
    22. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-19, December.
    23. Patterson, Paul M., 2006. "State-Grown Promotion Programs: Fresher, Better?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 21(1), pages 1-6.
    Full references (including those not matched with items on IDEAS)

    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. Carroll, Kathryn A. & Bernard, John C. & Pesek, John D. Jr., 2013. "Consumer Preferences for Tomatoes: The Influence of Local, Organic, and State Program Promotions by Purchasing Venue," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-18.
    2. Ying, Jiahui & Shonkwiler, Vanessa P. & Campbell, Benjamin L., 2018. "Willingness to Pay or Not to Pay: Valuing Foods Some Respondents Find Distasteful," 2018 Annual Meeting, August 5-7, Washington, D.C. 274065, Agricultural and Applied Economics Association.
    3. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    4. 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.
    5. Faical Akaichi & Rodolfo M. Nayga & Lawton Lanier Nalley, 2017. "Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 3-31.
    6. Kanokwan Chancharoenchai & Wuthiya Saraithong, 2022. "Sustainable Development of Cassava Value Chain through the Promotion of Locally Sourced Chips," Sustainability, MDPI, vol. 14(21), pages 1-18, November.
    7. Carpio, Carlos E. & Isengildina-Massa, Olga, 2009. "Measuring the Potential Economic Impact of a Regional Agricultural Promotion Campaign: The Case of South Carolina," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46729, Southern Agricultural Economics Association.
    8. 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.
    9. 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.
    10. Chiara Paffarini & Biancamaria Torquati & Tiziano Tempesta & Sonia Venanzi & Daniel Vecchiato, 2021. "Rural sustainability and food choice: the effect of territorial characteristics on the consumers’ preferences for organic lentils," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-23, December.
    11. Lusk, Jayson L. & Norwood, F. Bailey, 2006. "Social Desirability Bias in Willingness-to-Pay for Products with Normative Attributes," 2006 Annual meeting, July 23-26, Long Beach, CA 21428, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Yang, Shang-Ho & Woods, Timothy, 2014. "The Divergence of Defining Local Food – Consumer Co-op versus Conventional Grocery Shoppers," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170480, Agricultural and Applied Economics Association.
    13. Jennifer Porter & David Conner & Jane Kolodinsky & Amy Trubek, 2017. "Get real: an analysis of student preference for real food," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(4), pages 921-932, December.
    14. Onken, Kathryn A. & Bernard, John C. & Pesek, John D., Jr., 2011. "Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-15, April.
    15. Wuyang HU & Ping QING & Marvin BATTE & Tim WOODS & Stam ERNST, 2013. "What is local and for what foods does it matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(10), pages 454-466.
    16. Xu, Xun & Loke, Matthew K. & Leung, PingSun, 2015. "Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-14, April.
    17. Grebitus, Carola & Peschel, Anne & Hughner, Renee Shaw, "undated". "Drivers of Demand for Specialty Crops: The Example of Arizona-Grown Medjool Dates," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235545, Agricultural and Applied Economics Association.
    18. 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.
    19. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 253-274, December.
    20. Maples, McKenzie & Morgan, Kimberly L. & Interis, Matthew G. & Harri, Ardian, 2013. "Who Buys Food Directly from Producers in the Southeastern United States?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 509-518, August.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    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:wly:agribz:v:25:y:2009:i:3:p:412-426. 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: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.