The Distributional Impact of a Green Payment Policy for Organic Fruit
Principal Investigator(s): View help for Principal Investigator(s) Erik Nelson, Bowdoin College
Version: View help for Version V2
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Project Citation:
Nelson, Erik. The Distributional Impact of a Green Payment Policy for Organic Fruit. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-01-16. https://doi.org/10.3886/E108101V2
Project Description
Summary:
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Consumer spending
on organic food products has grown
rapidly. Some claim that organics have ecological, equity, and health
advantages over conventional food and therefore should be subsidized. Here we
explore the distributive impacts of an organic fruit subsidy that reduces the retail
price of organic fruit in the US by 10 percent. We estimate the impact of the
subsidy on organic fruit demand in a representative poor, middle income, and
rich US household using three analytical methods; including two econometric and
one machine learning. We do not find strong evidence of regressive redistribution
due to our simulated organic fruit subsidy; the poor household’s reaction to
the subsidy is not much different than the reaction at the other two households.
However, the infra-marginal savings from the subsidy tend to be larger in
richer households.
This is from Nelson E, Fitzgerald J, Tefft N. The Distributional Impact of a Green Payment Policy for Organic Fruit. PLOS One. 2019; DOI: 10.1371/journal.pone.0211199.
This is from Nelson E, Fitzgerald J, Tefft N. The Distributional Impact of a Green Payment Policy for Organic Fruit. PLOS One. 2019; DOI: 10.1371/journal.pone.0211199.
Funding Sources:
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None
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