To fund or not to fund: Assessment of the potential impact of a regional promotion campaign

Carlos E. Carpio, Olga Isengildina-Massa

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

This paper develops a framework for assessing the potential economic impact of a regional promotion campaign combining contingent valuation methods with a partial displacement equilibrium model. The proposed approach is applied to the evaluation of the potential economic impact of the locally grown campaign in South Carolina. Results reveal that the first season of the promotion campaign increased consumer willingness to pay for produce by 3.4%. The change in consumer preferences and the corresponding shift in demand increased producer surplus by $3.09 million. This economic benefit, combined with the 2007 promotion campaign investment, resulted in a benefit-cost ratio of 6.18.

Original languageEnglish
Pages (from-to)245-260
Number of pages16
JournalJournal of Agricultural and Resource Economics
Volume35
Issue number2
StatePublished - Aug 2010

Keywords

  • Contingent valuation
  • Economic impact
  • Equilibrium displacement model
  • Regional promotion campaign

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