An Examination of Consumer Willingness to Pay for Local Products

Aaron Adalja, James Hanson, Charles Towe () and Elina Tselepidakis

Agricultural and Resource Economics Review, 2015, vol. 44, issue 3, 253-274

Abstract: We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not conflate local and grass-fed production.

Date: 2015
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Journal Article: An Examination of Consumer Willingness to Pay for Local Products (2015)
Working Paper: An Examination of Consumer Willingness to Pay for Local Products (2014)
Working Paper: An Examination of Consumer Willingness to Pay for Local Products (2013)
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