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Is “Localness” about Distance or Relationships? Evidence from Hard Cider

Published online by Cambridge University Press:  19 December 2019

Jarrad Farris ,
Trey Malone ,
Lindon J. Robison  and
Nikki L. Rothwell
Jarrad Farris
Affiliation:
Department of Agricultural, Food, and Resource Economics, Michigan State University, 446 W. Circle Dr., Morrill Hall of Agriculture, East Lansing, MI48824; e-mail: [email protected].
Trey Malone*
Affiliation:
Department of Agricultural, Food, and Resource Economics, Michigan State University, 446 W. Circle Dr., Morrill Hall of Agriculture, East Lansing, MI48824.
Lindon J. Robison
Affiliation:
Department of Agricultural, Food, and Resource Economics, Michigan State University, 446 W. Circle Dr., Morrill Hall of Agriculture, East Lansing, MI48824; e-mail: [email protected].
Nikki L. Rothwell
Affiliation:
Northwest Michigan Horticultural Research Center, Michigan State University Extension, 6686 S. Center Highway, Traverse City, MI49684; e-mail: [email protected].
*
e-mail: [email protected] (corresponding author)
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Abstract

While many studies have evaluated consumer demand for local foods, fewer studies have focused on the mechanism that has created the positive willingness-to-pay for local foods. This article compares the role of geographic distance and attachment value in consumer preferences for locally produced hard cider. Consumer valuations are estimated via a “branded” discrete choice experiment where the respondents chose between an in-state hard cider, an out-of-state hard cider, and a no buy option. Our measure of travel distance is based on the optimal driving route between each consumer's GPS location and the locations of the cideries while our attachment value measure is based on social capital theory. This allows us to analyze individual-specific travel distance heterogeneity in consumer choice as it relates to attachment value. Based on a latent class logit model estimated from a discrete choice experiment with 441 participants, we show that attachment value is higher for a cider produced within the state than for a cider produced outside the state. Furthermore, we show that increases in attachment value increase demand for locally produced hard cider more than an equal increase in attachment value for non-locally produced hard cider. Our findings are consistent with “local” preferences based on geopolitical boundaries (e.g., the state of Michigan) and not distance. (JEL Classifications: B55, M3, Q13, C83)

Keywords

discrete choice experimentfood mileshard ciderlocal foodsocial capital
Type
Articles
Information
Journal of Wine Economics , Volume 14 , Issue 3 , August 2019 , pp. 252 - 273
Copyright
Copyright © American Association of Wine Economists 2019

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Footnotes

The authors thank an anonymous reviewer and the editor for their helpful comments and suggestions. All remaining errors are the responsibility of the authors.

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