Consumers’ Valuation for Local Foods: The Case of “Alaska Grown”

By: Zheng, Qiujie; Nayga, Jr., Rodolfo M.; Gao, Zhifeng
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We use a choice experiment to elicit consumers’ preferences and willingness to pay (WTP) for lettuce with the “Alaska Grown” label, taking into account its interactive effects with the organic and hydroponic grown claims. We test whether providing information about local food benefits affects consumers’ WTP for the Alaska Grown label. The results show that consumers are willing to pay a premium for lettuce with the Alaska Grown label; providing information further increases their WTP. However, the information effect is limited or negative if organic or hydroponic claims are present on the locally grown foods.