Does it make sense to buy locally produced organic products?

By D. Vanzetti and E. Wynen

Abstract
Enthusiasts of the organically grown food industry often espouse a preference for produce grown in the local region, and suggest that consumers should buy locally produced organic products.

One reason consumers buy organic products is to improve the environment. There is a perception that transporting foods long distances is wasteful, in part because transport costs are not appropriately priced to include all externalities.

The focus of this paper is to examine conceptually how trade can contribute to a more environmentally-sound way of supplying agricultural products to consumers, even when transport costs are adequately taken into account.

An example from the international wheat trade in Australia illustrates this point.


Source
Advances in the Economics of Environmental Resources (2002), Volume 4. Economics of pesticides, sustainable food production, and organic food markets. Pages 195-206. Published by Elsevier Science Ltd., Oxford, UK


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