What is free food worth? A nonmarket valuation approach to estimating the welfare effects of food pantry services

Abstract

AbstractFood pantries provide groceries to millions of households in the United States every year. Although there is research and information on many other aspects of food pantries, including financial information such as tax valuations for donated food, there is not a literature establishing the economic value of food pantry access for clients and potential clients. We use a valuation approach from environmental economics, revealed preference travel cost modeling, in a novel application to estimate food pantry value. We use a rich administrative dataset from a food bank system in Colorado and estimate demand for pantry visits, exploiting the move of a local pantry to correct for endogeneity bias. We find that the annual value of pantry access to pantry client households is between $600 and $1000, and the value per pantry visit is between $40 and $60. If we assume these values hold nationally, our localized results imply that the collective value of food pantry access among pantry client households may be between $19 billion and $28 billion dollars annually.