Price premium or price discount for locally produced food products? A temporal analysis for Hawaii

Yiwen Yang and PingSun Leung

Journal of the Asia Pacific Economy, 2020, vol. 25, issue 4, 591-610

Abstract: The local food movement in Hawaii has been gaining traction in recent years. However, it is unclear whether consumers’ preference for locally produced food items translates to a higher price, compared to imported alternatives, over time. According to short-term (eg single-year) scanner data, the results of hedonic pricing studies on the existence and level of local food price premiums or discounts across products are mixed. It appears that premiums or discounts for locally produced food products can vary considerably. To detect the temporal changes, if any, in these local price premiums or discounts, this study uses yearly time-series scanner data pertaining to four food products—lettuce, tomatoes, milk and eggs—to estimate the hedonic price model. We conclude that there are temporal changes in local price premiums for locally produced products in Hawaii. However, the temporal changes vary across food types.

Date: 2020
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DOI: 10.1080/13547860.2019.1687250

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