Demand for Organic and Conventional Fruits

Lin, Biing-Hwan, Steven T. Yen and Chung L. Huang

No 6440, 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: We examine consumer demand for organic and conventional fruits by estimating a censored demand system, using Nielsen's Homescan data. Sociodemographic characteristics and income are found to be significant factors of organic fruit consumption. Consumers are responsive to own-price changes in selected organic fruits, while the own-price elasticities for conventional fruits are much smaller. Asymmetric cross-price effects are found between organic and conventional fruits, suggesting that a change in relative prices will more likely cause consumers of conventional fruits to "cross-over" to organic fruits, while the reverse is less likely to happen such that organic consumers will "revert" to conventional fruits.

Keywords: organic fruit; Homescan data; censored demand system; two-step estimation; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:ags:aaea08:6440

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