Demand for Organic and Conventional Fruits

We examine consumer demand for organic and conventional fruits by estimating a censored demand system, using Nielsen's Homescan data. Sociodemographic characteristics and income are found to be significant factors of organic fruit consumption. Consumers are responsive to own-price changes in selected organic fruits, while the own-price elasticities for conventional fruits are much smaller. Asymmetric cross-price effects are found between organic and conventional fruits, suggesting that a change in relative prices will more likely cause consumers of conventional fruits to "cross-over" to organic fruits, while the reverse is less likely to happen such that organic consumers will "revert" to conventional fruits.


Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/6440
Total Pages:
29
Series Statement:
Selected Paper
469652




 Record created 2017-04-01, last modified 2017-11-16

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