Spatially Varying Impacts of Farmers Markets on Agricultural Land Use

34 Pages Posted: 16 Jun 2014

See all articles by Tomoaki Murakami

Tomoaki Murakami

University of Tokyo

Shinsaku Nakajima

Meiji University

Taro Takahashi

The University of Tokyo - Graduate School of Agricultural and Life Sciences

Yukinaga Nishihara

University of Tokyo

Asako Imai

University of Tokyo

Ryosuke Kikushima

University of Tokyo

Takeshi Sato

University of Tokyo

Date Written: June 13, 2014

Abstract

Forming part of the worldwide locavore movement, farmers markets have attracted a considerable number of citizens in recent years. While previous studies have extensively explored consumer preferences for this form of direct marketing, few have paid close attention to their effect on agricultural producers’ behaviour. Using a dataset from Chiba Prefecture in Japan’s eastern region where the locavore movement is highly active, we investigate changes to cropping patterns, particularly from grain production to vegetable production, when new farmers markets are established in producers’ neighbourhoods. At the same time, we attempt to identify the degree of spatial diversity of such land use shifts, based on the conjecture that the magnitude of the impact depends greatly on the area’s biophysical and socioeconomic conditions. To achieve these dual goals, we introduce a novel combination of geographically weighted regression with difference-in-differences analysis so that the coefficient of interest, or the treatment effect, can be estimated individually for each observation within the sample. The results show that at the sample median, the opening of a new farmers market increases the proportion of vegetable farms in its neighbourhood by 0.8 percentage points, although this effect can be as large as 5.2 percentage points in certain areas within Chiba Prefecture. The ability to geographically differentiate high-impact areas from low-impact areas could contribute to efficient policy design, and hence, reduction in public expenditure.

Keywords: Farmers market, land use, program evaluation, geographically weighted regressions, difference-in-differences, GIS

JEL Classification: Q12, Q15, R32, R58

Suggested Citation

Murakami, Tomoaki and Nakajima, Shinsaku and Takahashi, Taro and Nishihara, Yukinaga and Imai, Asako and Kikushima, Ryosuke and Sato, Takeshi, Spatially Varying Impacts of Farmers Markets on Agricultural Land Use (June 13, 2014). Available at SSRN: https://ssrn.com/abstract=2450712 or http://dx.doi.org/10.2139/ssrn.2450712

Tomoaki Murakami

University of Tokyo ( email )

Yayoi 1-1-1
Bunkyo-ku
Tokyo, Tokyo 113-8657
Japan

Shinsaku Nakajima

Meiji University

1-1 Kanda Surugadai
Surugadai, Chiyoda, 101-8301
Japan

Taro Takahashi (Contact Author)

The University of Tokyo - Graduate School of Agricultural and Life Sciences ( email )

1-1-1 Yayoi
Bunkyo, Tokyo 1138657
Japan

Yukinaga Nishihara

University of Tokyo ( email )

Yayoi 1-1-1
Bunkyo-ku
Tokyo, Tokyo 113-8657
Japan

Asako Imai

University of Tokyo

Yayoi 1-1-1
Bunkyo-ku
Tokyo, Tokyo 113-8657
Japan

Ryosuke Kikushima

University of Tokyo ( email )

Yayoi 1-1-1
Bunkyo-ku
Tokyo, Tokyo 113-8657
Japan

Takeshi Sato

University of Tokyo ( email )

Yayoi 1-1-1
Bunkyo-ku
Tokyo, Tokyo 113-8657
Japan

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