Will the “nouveau-riche” (new-rich) waste more food? Evidence from China

Abstract

Purpose This study aims to test the compensatory consumption theory with the explicit hypothesis that China's new-rich tend to waste relatively more food. Design/methodology/approach In this study, the authors use Heckman two-step probit model to empirically investigate the new-rich consumption behavior related to food waste. Findings The results show that new-rich is associated with restaurant leftovers and less likely to take them home, which supports the compensatory consumption hypothesis. Practical implications Understanding the empirical evidence supporting compensatory consumption theory may improve forecasts, which feed into early warning systems for food insecurity. And it also avoids unreasonable food policies. Originality/value This research is a first attempt to place food waste in a compensatory-consumption perspective, which sheds light on a new theory for explaining increasing food waste in developing countries.