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Assessing the Economic Impacts of Food Hubs to Regional Economies: a framework including opportunity cost

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  • Jablonski, B.B.R.
  • Schmit, T.M.
  • Kay, D.

Abstract

The number of food hubs (‘local food’ aggregation and distribution businesses) is growing, fueled in part by increasing public support. However, few data-driven economic impact assessments have evaluated these ventures. Using an input-output-based methodology and, a unique data set from a successful food hub operation, we measure the net and gross impacts from a policy supporting its development. We estimate a food hub gross output multiplier of 1.75, and employment multiplier of 2.14. However, utilizing customer surveys, we estimate that for every $1 increase in final demand for food hub products, a $0.11 offset in purchases occurs in other sectors.

Suggested Citation

  • Jablonski, B.B.R. & Schmit, T.M. & Kay, D., 2015. "Assessing the Economic Impacts of Food Hubs to Regional Economies: a framework including opportunity cost," Working Papers 250012, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:250012
    DOI: 10.22004/ag.econ.250012
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    References listed on IDEAS

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    Cited by:

    1. Cleary, Rebecca & Goetz, Stephan J. & Thilmany McFadden, Dawn D. & Ge, Houtian, 2017. "Location and Profit Drivers of Local Food Hubs," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258538, Agricultural and Applied Economics Association.
    2. Giaime Berti & Catherine Mulligan, 2016. "Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems," Sustainability, MDPI, vol. 8(7), pages 1-31, July.
    3. Bauman, Allison & Jablonski, Becca B.R. & Thilmany McFadden, Dawn, 2016. "Evaluating Scale and Technical Efficiency among Farms and Ranches with a Local Market Orientation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 242364, Agricultural and Applied Economics Association.
    4. Ge, Houtian & Canning, Patrick & Goetz, Stephan & Perez, Agnes, 2015. "Assessing the Supplier Role of Selected Fresh Produce Value Chains in the United States," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205713, Agricultural and Applied Economics Association.
    5. Sandrine Berger-Douce & Natacha Gondran & Florent Breuil, 2016. "RIODD 2016 « Energie, environnement et mutations sociales »," Post-Print emse-01351025, HAL.
    6. Gupta, Clare & Jablonski, Becca B.R., 2016. "Farm Impacts of Farm-to-Grocer Sales: The Case of Hawai’i," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-23, November.

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    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety;

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