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U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price
Economic Research Service, US Department of Agriculture, 1800 M Street NW, Washington, DC, 20036-5831, USA
Department of Agricultural Economics, The University of Tennessee, 2621 Morgan Circle, Knoxville, TN, 37996-4518, USA
Department of Agricultural and Applied Economics, 313-E Conner Hall, University of Georgia, Athens, GA, 30602-7509, USA
* Author to whom correspondence should be addressed.
Received: 17 July 2009; Accepted: 10 August 2009 / Published: 14 August 2009
Abstract: Using retail purchase data reported by Nielsen’s Homescan panel this study investigates the U.S. demand for organic and conventional fresh fruits. The study fills an important research void by estimating the much needed income and price elasticities for organic and conventional fruits utilizing a censored demand approach. Household income is found to affect organic fruit consumption. Consumers are more responsive to price of organic fruits than to price of conventional fruits. Cross-price effects suggest that a change in relative prices will more likely induce consumers to “cross-over” from buying conventional fruits to buying organic fruits, while it is less likely that organic consumers will “revert” to buying conventional fruits.
Keywords: National Organic Standards; Nielsen Homescan; organic fruit demand; price elasticities; censored demand system
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MDPI and ACS Style
Lin, B.-H.; Yen, S.T.; Huang, C.L.; Smith, T.A. U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price. Sustainability 2009, 1, 464-478.
Lin B-H, Yen ST, Huang CL, Smith TA. U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price. Sustainability. 2009; 1(3):464-478.
Lin, Biing-Hwan; Yen, Steven T.; Huang, Chung L.; Smith, Travis A. 2009. "U.S. Demand for Organic and Conventional Fresh Fruits: The Roles of Income and Price." Sustainability 1, no. 3: 464-478.