Price premium or price discount for locally produced food products? A 5W1H approach in meta‐analysis

Abstract

Previous empirical studies reveal conflicting results of estimating the price differential between locally produced foods and their imported counterparts. This study aims to identify possible key determinants of these diverse findings under the 5W1H conceptual scaffold. We conduct a meta‐analysis of the empirical evidence on price premiums or discounts of local food, based on a sample of 80 estimates obtained from 42 studies. Our findings show that studies using actual market prices generate a lower price premium of locally produced food than those using a willingness‐to‐pay value. Furthermore, our results reflect that consumers are increasingly more interested in local food over time.