Economic Impact of Organic Agriculture Hotspots in the United States

34 Pages Posted: 25 Apr 2016

See all articles by Ioana (Julia) Marasteanu

Ioana (Julia) Marasteanu

Government of the United States of America - Food and Drug Administration (FDA)

Edward C. Jaenicke

College of Agricultural Sciences, Department of Agricultural Economics and Rural Sociology

Date Written: April 17, 2016

Abstract

After identifying organic agriculture hotspots using spatial statistics, we estimate a treatment effects model that classifies a county’s membership in an organic hotspot as an endogenous treatment variable. We find that organic hotspot membership leads to a lower county-level poverty rate and a higher median household income. A similar result is not found when investigating the impact of general agriculture hotspots. On the other hand, our result is robust to alternative hotspot definitions based on type of organic operations to alternative methods of estimating average treatment effects on the treated.

Keywords: Organic agriculture, hotspots, Local Moran’s I, treatment effects

JEL Classification: Q10, Q18, R11

Suggested Citation

Marasteanu, Ioana (Julia) and Jaenicke, Edward C., Economic Impact of Organic Agriculture Hotspots in the United States (April 17, 2016). Available at SSRN: https://ssrn.com/abstract=2765969 or http://dx.doi.org/10.2139/ssrn.2765969

Ioana (Julia) Marasteanu

Government of the United States of America - Food and Drug Administration (FDA) ( email )

5600 Fishers Lane
Rockville, MD 20857-0001
United States

Edward C. Jaenicke (Contact Author)

College of Agricultural Sciences, Department of Agricultural Economics and Rural Sociology ( email )

University Park, PA 16802-3306
United States

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