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Organic Food Demand– evidence from a Danish micro panel

Hansen, Lars Gårn (2004) Organic Food Demand– evidence from a Danish micro panel. American Journal of Agricultural Economics. [Unpublished]

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Summary

Only a handful of studies have estimated organic food demand. They all focus on specific food submarkets assuming separability from other food consumption. However, consumers typically associate attributes such as e.g. healthiness and environment friendliness with organic variants of most types of food. If such general organic attributes are important for consumer behaviour then separability may not hold. In this paper we utilize a unique Danish micro panel where all food demand is registered on a disaggregated level with an organic/non-organic indicator to estimate a general food demand system with organic variants. We clearly reject the usual separability assumption and find that the behaviour of Danish consumers is consistent with them perceiving such general organic attributes. In addition estimation of a general demand system makes calculation of economy wide organic price elasticities and other insights into the structure of organic food demand possible.


EPrint Type:Journal paper
Subjects:"Organics" in general
Research affiliation: Denmark > DARCOF II (2000-2005) > III.1 (COF) Consumer demand for organic foods
Deposited By: Rosenkvist, Lars
ID Code:4755
Deposited On:03 May 2005
Last Modified:12 Apr 2010 07:30
Document Language:English
Status:Unpublished
Refereed:Submitted for peer-review but not yet accepted

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