econometrics

DETERMINING CONSUMER’S WILLINGNESS TO PAY FOR LOCALLY GROWN PRODUCE

For: Dr. Econohero

VARIABLES

Dependent Variable: Willingness to Pay for Locally Grown Produce

Independent Variable: Survey Questions

SURVEY QUESTIONS: DISSECTED

Higher likelihood for WTP for LGP

Lower likelihood for WTP for LGP

Determined via Secondary Research

Use of Likert Scale

INTRODUCTION

Since the 1980s ,

Local food has become necessary to sustain acceptable standards for

• Food Security

• Nutrition

• Food Affordability

In order to maintain durable competitive advantage in a global agricultural market.

PREVALENCE

FARMER’S MARKET DISPERSION

REGIONAL FARMER’S MARKET HUBS

Southern Florida lacks a regional hub and may benefit from such establishment

Locally Grown Food is now a $4.8 billion business in the USA.

LOCAL FOOD BENEFITS

•Improving Local Economy

•Improving Overall Health

•Improving Lifestyles

GOAL OF THE STUDY

Expedite the growth of the local food movement.

MOTIVATION

To promote local food, one must know what influences consumers to buy local food.

SPECIFIC OBJECTIVES

• Determine factors influencing consumers’ decisions on purchasing locally grown produce

• Draw policy insights for promoting the consumption of locally grown produce

STUDY AREA

ANALYTICAL METHOD

ConceptualConceptual Model

Design Survey

- Secondary Research

- Identifying Variables- Variable

Justification

Conduct Survey

- Target Locations- Surveying Techniques

Analyze Data

- Microsoft Excel- Stata Software

- Probit Regression Model

LITERATURE CITED

1 - Piyasiri, A.G.S.A., and A. Ariyawardana. Market Potentials and Willingness to Pay for Selected Organic Vegetables in Kandy. Sri Lankan Journal of Agricultural Economics, 2002. Pdf.

2 - Hamilton, Morgan. A Rotten Food System: How the Local Food Movement Is Creating Alternatives. University of Louisville, 2010. Pdf.3 - Dimitri, Carolyn, and Lydia Oberholtzer. Marketing U.S. Organic Foods Recent Trends From Farms to Consumers. Economic Research

Service, 2009. Pdf.4 - Martinez, Steve, Michael Hand, Michelle Da Pra, Susan Pollack, Katherine Ralston, Travis Smith, Stephen Vogel, Shellye Clark, Luanne

Lohr, Sarah Low, and Constance Newman. Local Food Systems Concepts, Impacts, and Issues. Economic Research Service, 2010. Pdf.

5 - http://www.teenaspridecsa.com/6 - Varian, Hal R. How to Build an Economic Model in Your Spare Time. UC Berkley, 1997. Pdf.7 - Makatouni, Aikaterini. What Motivates Consumers to Buy Organic Food in the UK? Results from a Qualitative Study. British Food

Journal, 2002. Pdf.8 - Sykes, Alan. An Introduction to Regression Analysis. University of Chicago, 1990. Pdf.9 - Skuras, Dimitris, and Aleka Vakrou. Consumers’ Willingness to Pay for Origin Labelled Wine A Greek Case Study. British Food Journal,

2002. Pdf.10 - Millock, Katrin, Lans G. Hansen, Mette Wier, and Laura M. Andersen. Willingness to Pay for Organic Foods: A Comparison between

Survey Data and Panel Data from Denmark. CIRED, 2000. Pdf.11 - Prog, Rich, and Nick McCann. Is Local Food More Expensive? A Consumer Price Perspective on Local and Non-Local Foods Purchased in

Iowa. Iowa State University, 2009. Pdf.

GO LOCAL