Premium
THE ECONOMICS OF MOVING COVENT GARDEN MARKET *
Author(s) -
Fevre A. J. Le,
Pickering J. F.
Publication year - 1972
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1972.tb01426.x
Subject(s) - consumption (sociology) , investment (military) , economics , distribution (mathematics) , value (mathematics) , compensation (psychology) , welfare , agricultural economics , market economy , psychology , mathematical analysis , social science , mathematics , machine learning , sociology , politics , political science , computer science , psychoanalysis , law
The decision to move Covent Garden wholesale fruit and vegetable market is evaluated. Trends in the consumption and distribution of fresh fruit and vegetables are assessed and it is argued that the volume of the produce handled by wholesale produce markets is likely to continue to decline. The nature of the costs and benefits of the move are identifed and quantified and their distribution between diferent interest groups discussed. While certain deficiencies in cost benefit techniques are to be borne in mind the conclusion is reached that the net present value of the benefits of the move shows a negative return on investment of 30 per cent or more and therefore the investment in the new market is not justified. It is also argued that in the absence of an adequate compensation mechanism the economic welfare criteria for the move are not satisfied.