An important aspect of the survival of remote rural areas is whether the food prices are higher to those paid elsewhere. Literature about this “remoteness premium” is inconclusive . This paper investigates the effect of out-shopping on food expensiveness in remote areas in Scotland and assesses if it can explain differences in estimates from various studies. For this purpose, a natural experiment was used. An expensiveness index was constructed using home scanner data. Food expensiveness was compared during the 2020 COVID-19 lockdown, when travel restriction prevented out-shopping, with the data from the same period in 2019. It was assumed that the difference – after controlling for the change in the purchased bundle of goods – may be attributed to the lockdown effect, preventing out-shopping. The results find that the premium paid in remote rural areas was small and out-shopping is an important factor limiting food expensiveness in remote areas of Scotland.
|Publication status||Accepted/In press - 29 Aug 2023|
|Event||XVII EAAE Congress, August 29th – September 1st 2023 - Rennes, Rennes, France|
Duration: 29 Aug 2023 → 1 Sept 2023
|Conference||XVII EAAE Congress, August 29th – September 1st 2023|
|Period||29/08/23 → 1/09/23|