The Demand for Organic and Conventional Produce in London,UK: A System Approach

The majority of studies on consumer demand for organic products neglect the presence of non‐organic competitors, ignoring their effect on consumer demand for organics. This article uses a demand system which includes both organic and non‐organic fruits and vegetables, with actual (as opposed to stated) data for household purchases. Estimation of our model provides empirical evidence on the interrelationships between organic and non‐organic products, as the relevant cross‐price elasticities. Own‐price elasticities indicate that organic fruits and vegetables are more price elastic than their non‐organic counterparts, and that lower social class households with children have the most own‐price elastic demand. Cross‐price elasticities indicate relatively strong loyalty to organic products.     

Consumer Attitudes toward GM Food and Pesticide Residues in India

Bacillus thuringiensis (Bt) vegetables will likely be commercialized in India soon. The technology could reduce pesticide residues in foods. Yet it is unclear whether consumers will appreciate this health advantage, or whether potential GM crop risks will dominate their attitudes. Using contingent valuation methods and a sample of urban households, we find that almost 60% of consumers would purchase Bt vegetables at current conventional vegetable prices, indicating a high acceptance level. The rest would purchase at a certain price discount. Strikingly, the required discount increases for people particularly concerned about pesticide residues, demonstrating that risk-averse consumers do not easily offset technology benefits against perceived risks.     

Healthy Competition to Support Healthy Eating? An Investigation of Fruit and Vegetable Pricing in UK Supermarkets

Governments and public health officials are urging the public to eat more fruits and vegetables to contribute to a healthy diet. However, there is concern that a lack of effective competition amongst supermarket retailers has resulted in inflated prices for these products which are deterring consumers from eating more of these healthy foods. We investigate this by examining the nature and extent of price competition for fresh fruits and vegetables amongst UK supermarket retailers, drawing on a panel of weekly retail and corresponding wholesale market prices over a seven‐year period. We find that the extent of supermarket competition varies across the products, being quite intense on some but much weaker on others, where the retailers do not fully respond to each other's prices and where the extent of their competitive interaction varies significantly with each other.     

A Censored Quantile Regression Analysis of Vegetable Demand: The Effects of Changes in Prices and Total Expenditure

Many diseases are linked to dietary behavior. One major diet‐related risk factor is a low consumption of vegetables. The consumption may be increased through public policies. The effects on vegetable purchases of either removing the value added tax on vegetables or a general income support are investigated. Adverse health effects are most serious in households consuming low quantities of vegetables. Therefore, the effects on high‐ and low‐consuming households are estimated by using quantile regressions (QRs). Since many households did not purchase any vegetable during each survey period, censored as well as ordinary QRs are used. Our results suggest that the effects of the policy variables differ in different parts of the conditional distribution of vegetable purchases. None of the proposed policy options is likely to substantially increase vegetable purchases among low‐consuming households. Bon nombre de maladies découlent des habitudes alimentaires. La faible consommation de légumes constitue un important facteur de risque liéà l'alimentation. Cette consommation pourrait être accrue par l'instauration de politiques gouvernementales. Nous avons examiné les effets de l'abolition de la taxe sur la valeur ajoutée ou d'un soutien du revenu sur les achats de légumes. Les effets néfastes sur la santé sont plus graves chez les ménages qui consomment de faibles quantités de légumes. Nous avons donc estimé les effets chez les ménages à forte et à faible consommation de légumes à l'aide de régressions par quantile. Comme de nombreux ménages n'ont pas acheté de légumes au cours des périodes sondées, nous avons utilisé des régressions par quantile censurées et des régressions par quantile ordinaires. Nos résultats ont indiqué que les effets des variables concernant les politiques diffèrent dans différentes parties de la distribution conditionnelle des achats de légumes. Aucune des options politiques proposées ne semble susceptible d'accroître substantiellement les achats de légumes chez les ménages qui en consomment peu.     

Household size and residential water demand: an empirical approach*

The effectiveness of pricing policies depends on the price elasticity of consumption. It is well documented that residential demand for water is influenced by heterogeneity associated with differences in the size of the household and socioeconomic characteristics. In this paper, we focus on household size. Our initial hypothesis is that users’ sensitivity to changes in price is different depending on the number of household members. To this end, we carry out an empirical estimation of urban water demand in Zaragoza (Spain) distinguishing between households with different sizes using data at the individual level. As far as we are aware, this approach to urban residential water demand is new in the literature. The analysis suggests that all households are sensitive to prices regardless of size. A more relevant finding is that small households are more sensitive to price changes.     

The demand for alcoholic beverages in Spain

The objective of this study is to analyze the main determinants of alcoholic beverages consumption at home. Data comes from the latest Spanish Household National Survey, which provides information on expenditure and quantities of different food products by household. Because households are interviewed only 1 week, a large number of zeros have been recorded. Among the existing censured demand models (the double hurdle (DH) model; the purchase‐infrequency model; and the Tobit purchase‐infrequency model, among others) and after carrying out model selection tests, the DH model has been finally estimated. All expenditure elasticities are positive, corresponding the highest value to spirits. Own price elasticities are negative and also in this case the spirits exhibit the highest value. Socio‐economic variables also play an important role in explaining consumer purchase and consumption decisions.     

Adoption of weather‐index insurance: learning from willingness to pay among a panel of households in rural Ethiopia

In this article we examine which farmers would be early entrants into weather‐index insurance markets in Ethiopia, were such markets to develop on a large scale. We do this by examining the determinants of willingness to pay for weather insurance among 1,400 Ethiopian households that have been tracked for 15 years as part of the Ethiopian Rural household Survey. This provides both historical and current information with which to assess the determinants of demand. We find that educated, wealthier individuals are more likely to purchase insurance. Risk aversion is associated with low insurance take‐up suggesting that models of technology adoption can inform the purchase and spread of weather index insurance. We also assess how willingness to pay varied as two key characteristics of the contract were varied and found that basis risk reduces demand for insurance particularly when the price of the contract is high, and that provision of insurance through groups is preferred by female headed households and individuals with lower levels of education.     

Household behavior with respect to meat consumption in the presence of BSE and CWD

In this study, Canadian household meat consumption behavior in exotic (deer and elk meat) and traditional meats (beef, pork, chicken, turkey, bison, and seafood) is examined. This research introduces some differences in public response to transmissible spongiform encephalopathies (TSE) risks across consumer segments from different sources of meat supply, including hunted meat. The analysis uses a combination of survey and household meat purchase data that include a balanced household panel of 2,393 households per year across time. A two-step estimation procedure is used with a probit model in the first step (consume or not) and a doublelog–translog two-stage demand system in the second step (level of consumption). It is assumed and tested that household sociodemographics, consumers’ risk perceptions/attitudes, and media coverage of bovine spongiform encephalopathy (BSE) and chronic wasting disease (CWD) are underlying demand shifters in consumers’ daily meat purchase decision. The results suggest that households who obtain venison from hunting show the highest confidence in venison safety. Exotic meat preferences negatively affect traditional meat consumption in the daily diets of households who purchase traditional meats from stores and obtain venison from hunting. In response to the media coverage of BSE and CWD, exotic meat eaters are less sensitive to animal disease media information than the general population.     

Chinese animal product consumption in the 1990s

Chinese animal product consumption behaviour was analysed for both urban and rural households using a complete regional consumption dataset that was augmented to include away-from-home consumption. Seven animal product expenditure share equations were estimated with an extended Almost Ideal Demand System model. The results suggest that Chinese consumers will continue to increase their consumption of animal products, but that consumption patterns have changed in the 1990s. A large percentage of household animal product expenditure is still on pork. However, the shares for aquatic and poultry products consumption will increase substantially. As a consequence, the pork expenditure share will be gradually reduced as incomes grow and diet preferences change in both urban and rural households. There are significant differences in animal product consumption preferences across regions of China. As a result, studies that omit regional dummy variables in their demand systems can produce different expenditure and price parameters. The present paper also found that many of the estimates of elasticities and marginal expenditure shares would be rather different if the data ignored consumption away from home.     

The Impact of Social Norms on Suboptimal Food Consumption: A Solution for Food Waste

Abstract

Consumers seem to have a reduced preference to buy fruits and vegetables with unusual appearance, products with damaged package and close to the expiration date, usually called suboptimal food products. However, this pattern of behavior is an important contributor to food waste levels. Interventions aimed at encouraging the purchase of suboptimal food are scarce, however, needed. Across two studies, we investigated the effect of social norms in driving suboptimal food consumption. Additionally, it was tested if food waste problem awareness is the underlying mechanism in the relationship between social norms and intention to buy suboptimal food. Results show that appeals employing social norms positively affect purchases intentions toward the products. Moreover, food waste problem awareness mediates the effect of social norms on intentions to purchase the product with an unusual appearance. We discuss how social norms can be used to tackle food waste and implications for marketing and policy actions.     

Information and consumer perception of the “organic” attribute in fresh fruits and vegetables

Using a double hurdle model on panel data from 3,200 Danish households (monthly observations for 2002–2007), we study the effects of health‐related media information on the demand for organic fruit and vegetables. We find that “negative” information about pesticides contained in conventional fruit and vegetables mainly influences the probability of a consumer entering the organic market, not the quantities consumed by households that are already active on the organic market. “Positive” information that links health and the consumption of organic food influences both steps of the decision process. Our dataset includes information about consumers’ media habits, which allows us to disentangle the direct effects of media information from the indirect effects of this information as it is disseminated through the population. Our results suggest that directly obtained information is the main type of information influencing consumers, while information loadings by dissemination through the population have almost no effect on consumption.     

Understanding rural household behavior: Beyond Boserup and Becker

New data and new methods have provided many new insights into rural households in the past 50 years. We analyze what we have learned from household models since Boserup and Becker, using this to frame more recent findings about household behavior from three types of studies: observational studies, experimental games, and impact evaluations. More sex-disaggregated data, as well as data that are collected at smaller units, such as agricultural plots, have allowed us to better understand agricultural productivity, risk sharing, and spousal cooperation. However, the focus on bargaining within households has often led us to ignore the cooperation that occurs within households. Many resources are owned and managed jointly by household members and many decisions are made jointly, although not all parties necessarily have equal voice in these decisions. Research demonstrating that households often do not reach efficient outcomes suggests that we still have much to learn about rural household behavior. Understanding both individual roles within households and the levels of cooperation, including joint decision making and ownership of resources, is essential to analysis of households, especially in rural areas where households engage in both production and consumption.     

The effects of food sales taxes on household food spending: An application of a censored cluster model

This study proposes a model of household food spending that accounts for zero censoring and can be applied to data collected through a clustered survey design to investigate the impact of food sales taxes on three groups: households who are eligible for and participate in the Supplemental Nutrition Assistance Program (SNAP), households who are eligible but do not participate in the program, and households who are not eligible for the program. We find that SNAP participating households are largely insensitive to grocery taxes and respond to restaurant taxes by shifting more of their food dollars towards at-home foods. Among households who are eligible for SNAP but do not participate in the program, grocery taxes reduce spending on foods purchased for at-home consumption, and thereby increase the amount of the total food budget allocated to away from home foods. This is concerning from a nutrition and health standpoint since away from home foods tend to be more calorie dense and nutritionally poorer than at home foods.     

最低收购价政策调整对我国粮食安全的影响——以稻谷为例

[目的]最低收购价政策实施以来,在稳粮价、促生产、保粮安的同时,也产生了显著的负面影响,探索以市场机制为核心的粮食价格支持政策改革势在必行。[方法]文章以稻谷为例,通过构建局部均衡模型,模拟逐渐下调最低收购价、取消最低收购价、取消最低收购价并大幅增加农业补贴等方案对我国稻谷的产量、总消费、库存和净进口等方面的影响,进而探究最低收购价政策调整对我国粮食安全的影响。[结果]（1）下调稻谷最低收购价,对稻谷市场价格、总产量和总消费的影响较小,而对库存和净进口量的影响较大;（2）取消最低收购价,虽然能大幅度减小国内外差价、库存量和进口量,但短期内也会显著减少稻谷产量,对我国的粮食供给安全带来了巨大冲击;（3）取消稻谷最低收购价,并大幅度提高了农业补贴后,稻谷总产量下降水平明显减少,既解决了托市收购带来的负面影响,也降低了取消托市收购对粮食供给安全的冲击。[结论]最低收购价政策的支持效应显著,为充分保障国内粮食安全,在推行粮食市场化改革时,应首先考虑小幅度下调最低收购价,而不是一次性取消最低收购价政策;同时,要配套相应的补贴政策,优化农业补贴结构,来保障粮农的种植积极性。     

绿色消费态度对森林认证产品消费行为的影响研究

基于计划行为理论,从绿色消费态度视角出发,运用结构方程模型研究消费者对森林认证产品的消费行为机制。结果表明:消费者的消费态度正向影响消费者对森林认证产品消费的主观规范和感知行为控制;消费者对森林认证产品消费的主观规范正向影响消费者的消费行为意向,且在消费态度与行为意向之间起完全中介作用;消费者对森林认证产品消费的感知行为控制正向影响消费者的消费行为意向,且在消费态度与行为意向之间起完全中介作用;消费者对森林认证产品消费的行为意向正向影响消费者的消费行为。由此提出利用网络平台促进与消费者的交流、提高消费者对森林认证产品的主观规范等建议。     

Do crop purchase programs improve smallholder welfare? The case of Zambia's Food Reserve Agency

Government and parastatal crop purchase programs have regained popularity in sub-Saharan Africa, with many citing improving smallholder farmers’ welfare as a key goal. Yet there is limited empirical evidence on the topic. This paper analyzes the effects of the Zambian Food Reserve Agency's (FRA's) maize purchase activities on smallholder welfare. The FRA buys maize at a pan-territorial price that often exceeds market prices in surplus production areas. Using two household panel survey datasets spanning 15 years and exploiting variation in the scale of FRA activities over time, we employ fixed effects and control function approaches to estimate the effects of a smallholder household's maize sales to the FRA on its welfare, as well as the effects of more intense FRA maize purchase activity in a given district on the welfare of smallholder households in the district. Results suggest positive direct welfare effects on the minority of smallholders that sell to the FRA. We also find that, in the early years of the program, more intense FRA maize purchase activity in a district was associated with reductions in smallholder welfare, particularly among maize autarkic and net buying households. In later years, we find no evidence of such negative effects and some evidence of positive district-level effects on maize net buyers.     

Produce Retail Price Volatility and Perceptions in the Canadian Market: Nutrition Security Variances

Nutrition security has been studied but rarely in the context of a developed economy. Furthermore, few studies have looked at how fluctuating produce process may influence nutrition security and how consumers cope with abrupt macro-economic changes. Between 2014 and 2015, Canadian consumers saw produce prices jump by more than 25% in a year in some cases. This exploratory survey looks at socioeconomic factors and evaluates how price increases influence produce consumption and substitution. A total of 1007 respondents participated in a cross national survey over a two-week period. Results show that lower income households are more vulnerable than higher income respondents. Results also explore a few more behavioral factors such as where produce shopping occurs and how market data is gathered before purchases. Respondents who consult flyers and use apps are more likely to behave rationally and cope with changing prices. Some limitations are presented. And finally, future research thrusts related to produce price fluctuations and nutrition security are suggested.     

Effects of Increasing Agricultural Productivity in a Multisectoral Model for the Philippines

This paper investigates empirically the economy-wide effects of agricultural productivity increases in the Philippines, reporting the results of a quantitative analysis based on a general equilibrium framework. A multisectoral, price endogenous model of the Philippine economy is employed, emphasizing not only agriculture but also other production sectors with which it closely interacts, as well as the distinction between rural and urban households in their income generation and consumption patterns. Among other findings, the differential effects on the real income of rural households vis-a-vis urban households arising from increased productivity in the various components of the agricultural production sector are striking. The resulting improvements in the trade balance and national income, among other macroeconomic variables, are also relatively significant. Moreover, there are significant differences in the economy-wide effects among the four sectors of food and agriculture distinguished in the study. Particularly interesting is the highly favorable impact of rising productivity in the food processing sector on agricultural crop production and rural income, a linkage effect that has not received much attention in the development literature.     

Abstracts of Second- and Third-Place Undergraduate Papers

There has been a high degree of differentiation of shell eggs in the last few years, likely due to historic decreases in egg consumption and growing interest in functional foods. The main variable that interests egg producers is the factor that compels consumers to pay more for certain egg attributes. Knowledge of this would allow producers to develop more effective marketing strategies. An intercept consumer survey was developed in order to elicit the effects of health consciousness and behavior on a consumer's intent to purchase eggs, and to purchase eggs with perceived health benefits. Survey questions pertained to the respondent's health consciousness, health behavior, demographic characteristics, and other attitudinal values. Multifactor health consciousness and health behavior scales were used based on those found in previous health and economic literature. The main focus of this study was to link demographics and attitudes with health consciousness and behavior of consumers, as well as linking health factors to egg consumption. Using average health consciousness and health behavior scores as well as Principal Component Analysis, health consciousness and behavior factors were calculated, and ordinary least squares regressions were estimated to link those scores and factors to demographic and attitudinal variables, and to link egg consumption to the health scores and factors, demographics, and attitudes. The Principal Component factors estimated were found to provide more explanation of egg consumption than simple health consciousness and health behavior averages. Consumers who are most occupied with their health purchase more eggs, those with relatively poor health behavior purchase fewer eggs and consumers who are concerned about the environmental effects of farm production in general eat more eggs.     

The dynamics of household beef consumption in Cameroon

Recent changes in economic conditions have introduced notable changes in household beef consumption patterns in Cameroon. While consumers are concerned about the short- and long-run effects of these factors on beef consumption habits, policy makers are more worried about the appropriate period necessary for households to make complete adjustments in consumption since this information is vital for planning production. Static and dynamic demand frameworks involving the Nerlovian partial adjustment (PA) model are used to capture the dynamic nature of beef consumption parameters. Maximum likelihood estimates of the PA model reveal that the conditioning variables explain 79% of the variation in beef consumption. Income, previous consumption, own-price and prices of fish and pork are jointly important in explaining beef consumption habits. Beef is a normal good with pork and fish as substitutes and chicken as a complement. Long-run price and income elasticities are greater than but not significantly different from their short-run values, suggesting that adjustment in consumption is fast with about 80% of the difference between actual and ‘desired’ consumption being completed in about 2 years. Projections show that demand for beef will reach 109620 t by the year 2000. giving an incremental total and per capita demand of 31 730 tons and 1.84 kg, respectively.