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It has repeatedly been shown that consumers consider the higher price of organic produce to be a barrier to buying organic food products. The present paper therefore asks whether organic consumption affects consumers’ actual total food expenditures. Food purchase data for a panel of Danish households during 2006–2014 were used to compare the total food expenditures of different organic household segments. A fixed effects model and a cross-section model both indicated that although food expenditures rose slightly with organic consumption, the increase was considerably less than had been suggested by organic price premiums at product level.

The Budgetary Implications of Being an Organic Consumer