Assessing the Economic Impacts of Food Hubs to Regional Economies: a framework including opportunity cost
Jablonski, B.B.R.; Schmit, T.M.; Kay, D.
The number of food hubs (‘local food’ aggregation and distribution businesses) is growing, fueled in part by increasing public support. However, few data-driven economic impact assessments have evaluated these ventures. Using an input-output-based methodology and, a unique data set from a successful food hub operation, we measure the net and gross impacts from a policy supporting its development. We estimate a food hub gross output multiplier of 1.75, and employment multiplier of 2.14. However, utilizing customer surveys, we estimate that for every $1 increase in final demand for food hub products, a $0.11 offset in purchases occurs in other sectors.
WP 2015-03 February 2015JEL Classification Codes: Q18; R15
Charles H. Dyson School of Applied Economics and Management, Cornell University
economic impact assessment; food hub; food policy; local food