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From Waste to Welfare: Multi-Outcome Effects of Disposal Costs in Perishable Food Markets

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  • Pi, Zhiying
  • Bai, Junfei

Abstract

Policies aimed at reducing food waste are central to global sustainability agendas, yet most studies analyze waste in isolation, neglecting interactions with food safety and nutrition. Efforts to curb waste can interact in unexpected ways with these objectives, potentially shifting inefficiencies rather than resolving them. This paper develops a unified producer–consumer model in which waste, spoilage risk, and nutritional deviation arise endogenously from intertemporal decisions on pricing, purchasing, and consumption. We show that single-objective policies, such as disposal fees or consumer was te reduction campaigns, may distort incentives, shift waste across stages, or worsen safety and health outcomes. Coordinated interventions improve welfare when spoilage probability decreases through real technological progress, so long as waste disposal fees are high enough and consumption remains close to the nutritional benchmark.

Suggested Citation

  • Pi, Zhiying & Bai, Junfei, 2026. "From Waste to Welfare: Multi-Outcome Effects of Disposal Costs in Perishable Food Markets," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404380, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404380
    DOI: 10.22004/ag.econ.404380
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