Direct-selling farming and urban externalities: what impact on products quality and market size?

Anne Fournier

No 16-05, Working Papers SMART from INRAE UMR SMART

Abstract: In this paper, we study how the proximity to cities affects the decision of farmers to enter the direct-selling market in presence of spatial heterogeneity in agricultural yields. We develop a theoretical model which takes into account the externality of urban pollution and market access costs on direct-selling profits. We find that regions hosting an intermediate-size city are more likely to supply a wider range of direct-selling varieties. Additionally, we highlight that spatial heterogeneity in productivity creates distortions in competition between farmers, and can have concomitant undesired effects on both the quality and the range of available varieties.

Keywords: direct-selling farming; spatial heterogeneity; urban pollution; city sized (search for similar items in EconPapers)
JEL-codes: D43 Q13 Q53 R52 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016
New Economics Papers: this item is included in nep-agr, nep-env and nep-ure
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http://ageconsearch.umn.edu/bitstream/234644/2/wp16-05.pdf (application/pdf)

Related works:
Journal Article: Direct-selling farming and urban externalities: What impact on product quality and market size? (2018)
Working Paper: Direct-selling Farming and Urban Externalities: What Impact on Product Quality and Market Size ? (2018)
Working Paper: Direct-selling farming and urban externalities: what impact on products quality and market size? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:rae:wpaper:201605

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