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Organic Apple Production in Washington State: An Input-Output Analysis


  • Pon Nya Mon

    (Washington State University)

  • David W. Holland

    (Washington State University)


This paper provides an Input-Output (I/O) based economic impact analysis for organic apple production in Washington State. The intent is to compare the economic "ripple" effect of organic production with conventional production. The analysis is presented in two scenarios: first we compare the economic impact of organic versus conventional apple production for a l demand increase of one million US$ as measured in sales. The second analysis looks at the economic impact of organic and conventional apple production in terms of given unit of land (405 hectares of production). Both state-wide output (sales) and employment (jobs) impacts are estimated under each scenario. Results are presented in terms of direct, indirect, and induced economic impact. Organic apple production was more labor intensive than conventional production. While, the organic apple sector used less intermediate inputs per unit of output than conventional production it also produced higher returns to labor and capital. As a result, the indirect economic effect was lower for the organic sector than the conventional sector, but the induced economic effect was higher for organic. Given the organic price premium, the economic impact (direct, indirect and induced) was larger for organic apple production than conventional apple production.

Suggested Citation

  • Pon Nya Mon & David W. Holland, 2005. "Organic Apple Production in Washington State: An Input-Output Analysis," Others 0503009, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpot:0503009
    Note: Type of Document - pdf; pages: 26

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    References listed on IDEAS

    1. Lin, Tun & Halbrendt, Catherine K. & Liang, Chyi-Lyi (Kathleen) & Wood, Nancy, 1999. "The Impact Of The Tourism Sector On The Vermont Economy: The Input-Output Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21618, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Maki, Wilbur R. & Olson, Douglas C. & Lindall, Scott A. & Senf, David R. & Schallau, Con H., 1989. "Implan Modeling Applications In State And Regional Development," Staff Papers 13896, University of Minnesota, Department of Applied Economics.
    3. David Holland & Eugenio Figueroa B. & John Gilbert, 2001. "The Role of agriculture and food processing in the chilean economy: results from an input-output analysis," Estudios de Economia, University of Chile, Department of Economics, vol. 28(2 Year 20), pages 293-308, December.
    4. Heinz Kurz & Neri Salvadori, 2000. "'Classical' Roots of Input-Output Analysis: A Short Account of its Long Prehistory," Economic Systems Research, Taylor & Francis Journals, vol. 12(2), pages 153-179.
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    More about this item


    conventional and organic apple production; multiplier effects; output; and employment effects; IMPLAN;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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