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Article

The Economic Impact of Government Policy on Market Prices of Low-Fat Pork in South Korea: A Quasi-Experimental Hedonic Price Approach

by 1 and 2,*
1
Department of Sustainable Development Research, Korea Environment Institute, Sejong 30147, Korea
2
Bayreuth Center of Ecology and Environmental Research, University of Bayreuth, 95440 Bayreuth, Germany
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(3), 892; https://doi.org/10.3390/su10030892
Received: 19 February 2018 / Revised: 19 March 2018 / Accepted: 19 March 2018 / Published: 20 March 2018
(This article belongs to the Section Sustainable Agriculture)
The implementation of government policy can have an influence on market environment and market prices of pork in consequence. In South Korea, consumers prefer high-fat pork cuts due to the prevalence of roosting pork over a hot grill. This paper examines the impact of the government policy which aims to increase the consumption of low-fat pork cuts because of the concerns regarding asymmetric consumption between high-fat and low-fat pork cuts. Using hedonic price methods combined with quasi-experimental approaches we estimate the subsequent impact of food policy on the price of low-fat pork cuts using a time series of sales data. This study utilized an effective approach which has been widely employed for policy evaluation to produce plausible estimates of the economic values generated by the government policy. We find the existence of market segmentation and different impacts of the policy between markets. While the market price for high-fat pork cuts has remained stable, the price for low-fat pork cuts has slightly increased since the policy has been implemented. This paper illustrates that government’s policy can be a good strategy to maintain sustainability of the food industry by improving the balance in pork consumption and the management of stocks. View Full-Text
Keywords: low-fat pork cuts; hedonic price method; government policy; market segmentation; sustainability of food industry low-fat pork cuts; hedonic price method; government policy; market segmentation; sustainability of food industry
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MDPI and ACS Style

Kim, H.N.; Choi, I.-C. The Economic Impact of Government Policy on Market Prices of Low-Fat Pork in South Korea: A Quasi-Experimental Hedonic Price Approach. Sustainability 2018, 10, 892. https://doi.org/10.3390/su10030892

AMA Style

Kim HN, Choi I-C. The Economic Impact of Government Policy on Market Prices of Low-Fat Pork in South Korea: A Quasi-Experimental Hedonic Price Approach. Sustainability. 2018; 10(3):892. https://doi.org/10.3390/su10030892

Chicago/Turabian Style

Kim, Hyun N.; Choi, Ik-Chang. 2018. "The Economic Impact of Government Policy on Market Prices of Low-Fat Pork in South Korea: A Quasi-Experimental Hedonic Price Approach" Sustainability 10, no. 3: 892. https://doi.org/10.3390/su10030892

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