Abstract
We study the literature on willingness to pay (WTP) for local food by applying meta-regression analysis to a set of 35 eligible research papers that provide 86 estimates on consumers’ WTP for the attribute “local.” An analysis of the distribution of WTP measures suggests the presence of publication selection bias that favors larger and statistically significant results. The analyzed literature provides evidence for statistically significant differences among consumers’ WTP for various types of product. Moreover, we find that the methodological approach (choice experiments vs. other approaches) and the analyzed country can have a significant influence on the generated WTP for local.
Highlights
Local food production systems are one of agribusinesses’ major innovations in the last decades [1: 2]
To carry out the search, we apply a set of keywords that include “Willingness to Pay”, and “Local Food”, or “Local”, or “Regional”, or “State Grown” to ensure that we identify all relevant literature
The objective of this paper is to determine a holistic estimate of the willingness to pay (WTP) for the local attribute
Summary
Local food production systems are one of agribusinesses’ major innovations in the last decades [1: 2]. According to Mintel’s Locavore report, consumers in the U.S are highly motivated to purchase local food, with almost 50% of them stating that they are buying local foods at least on a weekly basis [3]. Testing the priorities for food shopping Mintel asked consumers, which attributes encourage them to buy store brands. In Europe, in 2017, German consumers were asked how often they purchase locally produced foods. 42% stated ‘very often’, and 45% answered ‘sometimes’ [5]. These examples from across the globe show that local food purchases are a global phenomenon
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