Assessing the economic impacts of food hubs on regional economies: a framework that includes opportunity cost
Date
2016-04-29
Authors
Jablonski, B. B. R., author
Schmit, T. M., author
Kay, D, author
Agricultural and Resource Economics Review, publisher
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Abstract
The number of food hubs—businesses that aggregate and distribute local food—in the United States is growing, fueled in part by increasing public support. However, there have been few data-driven assessments of the economic impacts of these ventures. Using an input-output-based methodology and a unique data set from a successful food hub, we measure net and gross impacts of a policy supporting their development. We estimate a gross output multiplier of 1.75 and an employment multiplier of 2.14. Using customer surveys, we estimate that every $1 increase in final demand for food hub products generates a $0.11 reduction in purchases in other sectors.
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Subject
economic impact assessment
food hub
food policy
food systems
local food