C. Schmidt, Zheng Tian, S. Goetz, Chadley R. Hollas, Lisa Chase
Abstract Agritourism and direct-to-consumer sales are increasingly used as diversification strategies to generate additional farm revenue streams. Yet despite their growing importance, the impacts, interactions, and adoption of these strategies remain poorly understood. Here we use univariate and bivariate local Moran’s I statistics to identify agritourism and direct-to-consumer sales hotspots in the United States and a Seemingly-Unrelated-Regression Spatial Durbin Model to examine the association between agritourism and direct farm sales to consumers. We find that agritourism and direct sales reinforce each other within the same county but not consistently across neighboring counties.
{"title":"Agritourism and direct sales clusters in the United States","authors":"C. Schmidt, Zheng Tian, S. Goetz, Chadley R. Hollas, Lisa Chase","doi":"10.1017/age.2023.1","DOIUrl":"https://doi.org/10.1017/age.2023.1","url":null,"abstract":"Abstract Agritourism and direct-to-consumer sales are increasingly used as diversification strategies to generate additional farm revenue streams. Yet despite their growing importance, the impacts, interactions, and adoption of these strategies remain poorly understood. Here we use univariate and bivariate local Moran’s I statistics to identify agritourism and direct-to-consumer sales hotspots in the United States and a Seemingly-Unrelated-Regression Spatial Durbin Model to examine the association between agritourism and direct farm sales to consumers. We find that agritourism and direct sales reinforce each other within the same county but not consistently across neighboring counties.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"168 - 188"},"PeriodicalIF":1.3,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49163422","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Compared to other policy instruments that aim to change consumer behavior, information provision is perhaps the least controversial. An important question is how information in the form of carbon labels can contribute to direct food consumption toward reduced climate impact. From a policy guidance perspective, there is a need to identify how the labeling strategy affects consumers’ ability to identify lower emitting food products and the behavioral change due to carbon information. Key aspects of a carbon label are discussed, as well as the implications of different labeling schemes. Drawing on economic and behavioral theories, we propose that, to assist consumers in identifying changes in consumption that contribute to significant reductions in their climate impact, a carbon label must enable comparisons between product groups and not only within narrowly defined product groups. This suggests mandatory labeling, since producers of high-emission products are less likely to display such labels. However, it is important to consider both costs and benefits of labeling schemes and to consider complementing labeling with other policy instruments.
{"title":"The future of carbon labeling – Factors to consider","authors":"A. Edenbrandt, Jonas Nordström","doi":"10.1017/age.2022.29","DOIUrl":"https://doi.org/10.1017/age.2022.29","url":null,"abstract":"Abstract Compared to other policy instruments that aim to change consumer behavior, information provision is perhaps the least controversial. An important question is how information in the form of carbon labels can contribute to direct food consumption toward reduced climate impact. From a policy guidance perspective, there is a need to identify how the labeling strategy affects consumers’ ability to identify lower emitting food products and the behavioral change due to carbon information. Key aspects of a carbon label are discussed, as well as the implications of different labeling schemes. Drawing on economic and behavioral theories, we propose that, to assist consumers in identifying changes in consumption that contribute to significant reductions in their climate impact, a carbon label must enable comparisons between product groups and not only within narrowly defined product groups. This suggests mandatory labeling, since producers of high-emission products are less likely to display such labels. However, it is important to consider both costs and benefits of labeling schemes and to consider complementing labeling with other policy instruments.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"151 - 167"},"PeriodicalIF":1.3,"publicationDate":"2023-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47759610","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The US craft brewery industry has grown steadily in recent years before the 2020 COVID-19 pandemic. The majority of small, independently owned craft breweries rely on tasting rooms for revenues and profits. Using data collected from a survey of tasting room visitors from 21 craft breweries in New York, this research investigates factors influencing visitors’ customer satisfaction (CS) and the link between brewery tasting room CS and sales performance. The results show that brewery interior ambience, beer tasting execution, and friendliness and knowledge of servers are the main factors influencing CS in tasting rooms. Furthermore, results suggest that higher CS levels increase visitors’ purchase likelihood and beer purchase amounts (by volume and value). These findings indicate that breweries should focus on such factors as strengthening staff training, enhancing tasting room ambience, and improving beer tasting execution that have the highest positive influence on CS to increase sales. This study has implications for the rapidly growing craft brewery industry in the USA.
{"title":"Customer satisfaction and sale performance in New York State brewery tasting rooms","authors":"Jie Li, S. M. Wagner, M. Gómez, A. Mansfield","doi":"10.1017/age.2022.28","DOIUrl":"https://doi.org/10.1017/age.2022.28","url":null,"abstract":"Abstract The US craft brewery industry has grown steadily in recent years before the 2020 COVID-19 pandemic. The majority of small, independently owned craft breweries rely on tasting rooms for revenues and profits. Using data collected from a survey of tasting room visitors from 21 craft breweries in New York, this research investigates factors influencing visitors’ customer satisfaction (CS) and the link between brewery tasting room CS and sales performance. The results show that brewery interior ambience, beer tasting execution, and friendliness and knowledge of servers are the main factors influencing CS in tasting rooms. Furthermore, results suggest that higher CS levels increase visitors’ purchase likelihood and beer purchase amounts (by volume and value). These findings indicate that breweries should focus on such factors as strengthening staff training, enhancing tasting room ambience, and improving beer tasting execution that have the highest positive influence on CS to increase sales. This study has implications for the rapidly growing craft brewery industry in the USA.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"132 - 150"},"PeriodicalIF":1.3,"publicationDate":"2023-03-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48386067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In recent years, there has been significant growth in the sales of plant-based alternatives to meat and dairy products. However, it remains unclear whether these alternatives are actually reducing sales of livestock-derived products. This paper examines the relationship between the sales of one particular livestock-derived product – unflavored dairy milk – and its plant-based alternative – nondairy milk. Using data from a panel of US consumers between 2004 and 2018, I find that a 1-gallon increase in nondairy milk sales is associated with a 0.43–0.60 gallon reduction in dairy milk sales. The inverse relationship between dairy and nondairy milk purchases is strongest among households with high initial expenditure on dairy milk. Despite the inverse relationship between dairy and nondairy milk purchases, the rapid increase in nondairy milk sales between 2009 and 2018 explains little of the concomitant decline in dairy milk sales.
{"title":"Does plant-based milk reduce sales of dairy milk? Evidence from the almond milk craze","authors":"Peter Slade","doi":"10.1017/age.2022.22","DOIUrl":"https://doi.org/10.1017/age.2022.22","url":null,"abstract":"Abstract In recent years, there has been significant growth in the sales of plant-based alternatives to meat and dairy products. However, it remains unclear whether these alternatives are actually reducing sales of livestock-derived products. This paper examines the relationship between the sales of one particular livestock-derived product – unflavored dairy milk – and its plant-based alternative – nondairy milk. Using data from a panel of US consumers between 2004 and 2018, I find that a 1-gallon increase in nondairy milk sales is associated with a 0.43–0.60 gallon reduction in dairy milk sales. The inverse relationship between dairy and nondairy milk purchases is strongest among households with high initial expenditure on dairy milk. Despite the inverse relationship between dairy and nondairy milk purchases, the rapid increase in nondairy milk sales between 2009 and 2018 explains little of the concomitant decline in dairy milk sales.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"112 - 131"},"PeriodicalIF":1.3,"publicationDate":"2023-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47922152","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper estimates the effect of environmental remediation on housing prices in the Milwaukee Estuary Area of Concern (AOC) using a hedonic analysis of individual arms-length sales before and after a major remediation action between 2011 and 2015. Our design leverages this before-after comparison as well as the proximity of homes to remediation and the AOC boundary. Measuring the effect of AOCs in the housing market has always been a difficult task, given that water in AOCs can provide a mix of amenities and disamenities. Indeed, we find little evidence of a negative proximity effect when applying hedonic analysis to cross-section data. However, when we apply the analysis to a repeated cross section in a quasi-experimental framework, we find statistically significant evidence that living near the affected part of the AOC became more desirable after cleanup.
{"title":"The effect of remediating PCB-contaminated sediments on home prices in Milwaukee, Wisconsin, USA","authors":"R. Wilkinson, Richard T. Melstrom","doi":"10.1017/age.2022.26","DOIUrl":"https://doi.org/10.1017/age.2022.26","url":null,"abstract":"Abstract This paper estimates the effect of environmental remediation on housing prices in the Milwaukee Estuary Area of Concern (AOC) using a hedonic analysis of individual arms-length sales before and after a major remediation action between 2011 and 2015. Our design leverages this before-after comparison as well as the proximity of homes to remediation and the AOC boundary. Measuring the effect of AOCs in the housing market has always been a difficult task, given that water in AOCs can provide a mix of amenities and disamenities. Indeed, we find little evidence of a negative proximity effect when applying hedonic analysis to cross-section data. However, when we apply the analysis to a repeated cross section in a quasi-experimental framework, we find statistically significant evidence that living near the affected part of the AOC became more desirable after cleanup.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"71 - 88"},"PeriodicalIF":1.3,"publicationDate":"2022-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41553287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jiwon Lee, L. Schulz, Elizabeth Hoffman, G. Tonsor
Abstract Consumers tend to overestimate food risks, and news reporting that draws attention to the deadly aspects of animal disease can cause fear in consumers even when a disease is not a food safety issue. We utilize an online survey experiment with U.S. pork consumers to assess how prior knowledge of African swine fever (ASF) and how news headlines and article content can affect pork purchases. We find that consumers are generally unaware of ASF, and almost half of respondents, who are all typically pork consumers, would be unwilling to purchase pork if there were an ASF outbreak in the United States. Within our experiment consumers who have less prior knowledge of ASF hesitated to buy pork, when first hearing of an outbreak. While additional information that ASF is not a human health threat helped mitigate pork avoidance, the placement of food safety assurance in either the headline or body of the article does not show a significantly different impact on consumer willingness to pay. As part of preparation efforts for a potential outbreak, our results emphasize the role of consumers’ prior knowledge and perceptions of the disease, which relays the importance of media cooperation in proactively informing the public about ASF outbreaks and highlighting the nonimpact on human health.
{"title":"How can reporting on foreign animal diseases affect meat purchases? The case of African swine fever","authors":"Jiwon Lee, L. Schulz, Elizabeth Hoffman, G. Tonsor","doi":"10.1017/age.2022.23","DOIUrl":"https://doi.org/10.1017/age.2022.23","url":null,"abstract":"Abstract Consumers tend to overestimate food risks, and news reporting that draws attention to the deadly aspects of animal disease can cause fear in consumers even when a disease is not a food safety issue. We utilize an online survey experiment with U.S. pork consumers to assess how prior knowledge of African swine fever (ASF) and how news headlines and article content can affect pork purchases. We find that consumers are generally unaware of ASF, and almost half of respondents, who are all typically pork consumers, would be unwilling to purchase pork if there were an ASF outbreak in the United States. Within our experiment consumers who have less prior knowledge of ASF hesitated to buy pork, when first hearing of an outbreak. While additional information that ASF is not a human health threat helped mitigate pork avoidance, the placement of food safety assurance in either the headline or body of the article does not show a significantly different impact on consumer willingness to pay. As part of preparation efforts for a potential outbreak, our results emphasize the role of consumers’ prior knowledge and perceptions of the disease, which relays the importance of media cooperation in proactively informing the public about ASF outbreaks and highlighting the nonimpact on human health.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"89 - 111"},"PeriodicalIF":1.3,"publicationDate":"2022-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46313362","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We present a game-theoretic model of a firm’s production decision to analyze the conditions under which the firm would engage in sustainable practices when there exists a certification agency that can audit the firm. Our results show that when the certification agency is firm-owned or when it is an independent, profit-maximizing entity, then there is no equilibrium in which the firm chooses to produce in a sustainable manner. We also present real-world examples from the apparel and footwear industry, as well as the mining industry, that are consistent with our theoretical results. We consider what would happen if the certification agency is government-operated or a non-profit organization with a mandate to monitor the firm’s production process. We show that – combined with tax incentives or subsidies for the firm if necessary, and greater specificity regarding what is sustainable – there exists an equilibrium in which the firm would choose to engage in sustainable production in this case. We analyze extensions of the model to examine conditions under which the phenomenon of greenwashing can arise as an equilibrium outcome. We also propose a “bounty system” that the government can implement to incentivize monitoring of firms’ production processes, and we show how such a policy can induce more sustainable production practices by the firm.
{"title":"Credibility, transparency, and sustainability in fashion: a game-theoretic perspective","authors":"Olivia Nandkeolyar, Frederick R. Chen","doi":"10.1017/age.2022.24","DOIUrl":"https://doi.org/10.1017/age.2022.24","url":null,"abstract":"Abstract We present a game-theoretic model of a firm’s production decision to analyze the conditions under which the firm would engage in sustainable practices when there exists a certification agency that can audit the firm. Our results show that when the certification agency is firm-owned or when it is an independent, profit-maximizing entity, then there is no equilibrium in which the firm chooses to produce in a sustainable manner. We also present real-world examples from the apparel and footwear industry, as well as the mining industry, that are consistent with our theoretical results. We consider what would happen if the certification agency is government-operated or a non-profit organization with a mandate to monitor the firm’s production process. We show that – combined with tax incentives or subsidies for the firm if necessary, and greater specificity regarding what is sustainable – there exists an equilibrium in which the firm would choose to engage in sustainable production in this case. We analyze extensions of the model to examine conditions under which the phenomenon of greenwashing can arise as an equilibrium outcome. We also propose a “bounty system” that the government can implement to incentivize monitoring of firms’ production processes, and we show how such a policy can induce more sustainable production practices by the firm.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"43 - 70"},"PeriodicalIF":1.3,"publicationDate":"2022-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46801458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Marziyeh Bahalou Horeh, L. Elbakidze, A. Sant’Anna
Abstract A regulatory liability-based approach to reducing foodborne illnesses is widely used in the U.S. But how effective is it? We exploit regulatory regime variation across states and over time to examine the relationship between product liability laws and reported foodborne illnesses. We find a positive and statistically significant relationship between strict liability with punitive damages and the number of reported foodborne illnesses. We find, however, no statistically significant relationship between strict liability with punitive damages and the number of foodborne illness-related hospitalizations and deaths.
{"title":"Foodborne illnesses and product liability in the U.S.","authors":"Marziyeh Bahalou Horeh, L. Elbakidze, A. Sant’Anna","doi":"10.1017/age.2022.25","DOIUrl":"https://doi.org/10.1017/age.2022.25","url":null,"abstract":"Abstract A regulatory liability-based approach to reducing foodborne illnesses is widely used in the U.S. But how effective is it? We exploit regulatory regime variation across states and over time to examine the relationship between product liability laws and reported foodborne illnesses. We find a positive and statistically significant relationship between strict liability with punitive damages and the number of reported foodborne illnesses. We find, however, no statistically significant relationship between strict liability with punitive damages and the number of foodborne illness-related hospitalizations and deaths.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":"52 1","pages":"1 - 42"},"PeriodicalIF":1.3,"publicationDate":"2022-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49121247","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Federal administrative data present a valuable opportunity for food and agricultural industry locational outcome research. We review issues with aggregated U.S. public data and summarize current methods. An example empirical approach combines federal administrative and secondary data. We compare results with differing levels of industrial aggregation. Results indicate locational determinants vary in magnitude, sign, and significance across industries and their sub-industries, as well as between employers and non-employers – nuances commonly missed with public data. We conclude by emphasizing that studies relying on public (more-aggregated) data may miss locational outcome relationships or inappropriately generalize to sub-industries and suggest data access changes.
{"title":"Food and agricultural industry locational determinants research: Aggregation bias and size measurement in the agricultural support industry","authors":"C. Carpenter, Anders Van Sandt, S. Loveridge","doi":"10.1017/age.2022.21","DOIUrl":"https://doi.org/10.1017/age.2022.21","url":null,"abstract":"\u0000 Federal administrative data present a valuable opportunity for food and agricultural industry locational outcome research. We review issues with aggregated U.S. public data and summarize current methods. An example empirical approach combines federal administrative and secondary data. We compare results with differing levels of industrial aggregation. Results indicate locational determinants vary in magnitude, sign, and significance across industries and their sub-industries, as well as between employers and non-employers – nuances commonly missed with public data. We conclude by emphasizing that studies relying on public (more-aggregated) data may miss locational outcome relationships or inappropriately generalize to sub-industries and suggest data access changes.","PeriodicalId":44443,"journal":{"name":"Agricultural and Resource Economics Review","volume":" ","pages":""},"PeriodicalIF":1.3,"publicationDate":"2022-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46662681","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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