The Demand for Organic and Conventional Produce in London, UK: A System Approach

Vasiliki Fourmouzi*, Margarita Genius, Peter Midmore

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

17 Citations (SciVal)

Abstract

The majority of studies on consumer demand for organic products neglect the presence of non-organic competitors, ignoring their effect on consumer demand for organics. This article uses a demand system which includes both organic and non-organic fruits and vegetables, with actual (as opposed to stated) data for household purchases. Estimation of our model provides empirical evidence on the interrelationships between organic and non-organic products, as the relevant cross-price elasticities. Own-price elasticities indicate that organic fruits and vegetables are more price elastic than their non-organic counterparts, and that lower social class households with children have the most own-price elastic demand. Cross-price elasticities indicate relatively strong loyalty to organic products.

Original languageEnglish
Pages (from-to)677-693
Number of pages17
JournalJournal of Agricultural Economics
Volume63
Issue number3
DOIs
Publication statusPublished - Sept 2012

Keywords

  • organic fruit and vegetables
  • PRICE
  • QUALITY
  • FOOD
  • Almost Ideal and censored demand systems
  • D12
  • C34
  • British households
  • MODELS
  • SIMULATION
  • QUANTITY

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