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The returns to promotion of healthy choices in Tasmania: are you in the dark about the power of mushrooms?
Author(s) -
Alston Julian M.,
Parks Joanna C.
Publication year - 2012
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2011.00577.x
Subject(s) - economics , mushroom , promotion (chess) , marketing , supply and demand , production (economics) , agricultural economics , business , microeconomics , politics , chemistry , food science , political science , law
The Australian Mushroom Growers Association (AMGA) has recently developed a revised marketing strategy to promote mushrooms using messages based on scientific findings about the nutrition and health consequences of regularly incorporating mushrooms into meals. This article evaluates impacts based on a test‐market experiment in Tasmania. We use a difference‐in‐differences econometric methodology to quantify the programme‐induced shifts in demand, and we use the resulting estimates in a supply and demand modelling framework to quantify the effects of promotion‐induced demand shifts on prices, quantities, and measures of economic well‐being. We estimate a conservative benefit–cost ratio for Tasmanian producers of 7.6:1 if they were to bear the entire cost and 11.4:1 if the programme were financed by a levy on production (or spawn). The aggregate benefit–cost ratio, including benefits to consumers is also 11.4:1.