The influence of Agro-terrorism on consumers' preference for locally grown products: a case-study from New Jersey

Abstract

The economics of agro-terrorism has not been fully developed within the economics literature, yet with increasing concerns about agro-terrorism it is important to understand how consumers will generally respond. This article presents an overview of food safety issues, and develops an economic model that can be used to illustrate and establish hypotheses regarding consumer behaviour and agro-terrorism. We then present sample and econometric results from a survey of 304 New Jersey consumers and explain the characteristics of the 33% that confirmed that they have increased purchases of locally grown produce due to terrorism fears.

Notes

¹ This should be viewed in the short run. As demand for safer food increase its price will rise making it less attractive, while the demand for less save food falls making it more attractive. But the result should hold under a new equilibrium.