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An Examination of Consumer Willingness to Pay for Local Products

  • Aaron Adalja (a1), James Hanson (a1), Charles Towe (a2) and Elina Tselepidakis (a3)
Abstract

We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not conflate local and grass-fed production.

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Corresponding author
Correspondence: Aaron AdaljaDepartment of Agricultural and Resource EconomicsUniversity of Maryland2200 Symons HallCollege Park MD 20742Phone 216.374.3136Email aadalja@umd.edu
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Agricultural and Resource Economics Review
  • ISSN: 1068-2805
  • EISSN: 2372-2614
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