Food prices in Scottish remote rural areas: Measuring and explaining the ‘remoteness premium’

C Revoredo-Giha, Carlo Russo

Research output: Contribution to conferencePaperpeer-review

Abstract

The paper investigates whether consumers in Scotland’s remote areas suffer of food prices higher than the country’s average prices (i.e., a ‘remoteness premium’). The question is of particular importance given the concerns about the sustainability of those communities. The Aguiar and Hurst (2007) expenditure index (AHEI) was computed as a measure of food expenditure using a sample of 2,636 households from Kantar Worldpanel database for Scotland for 2018. It showed that consumers in remote areas pay a small (0.2 per cent) but statistically significant premium. The differences amongst households were explained by demographic variables and shopping habits using a weighted least square regression. On average, consumers in remote areas are older and shop less actively (shopping in concentrated in fewer stores, with a lower number of trips) than others consumers in Scotland. The results raise concerns as these factors are expected to become even more severe in the future.
Original languageEnglish
Number of pages13
Publication statusPrint publication - 2021
Event16th Congress of the European Association of Agricultural Economists “Raising the Impact of Agricultural Economics: Multidisciplinarity, Stakeholder Engagement and Novel Approaches” - Online, Prague, Czech Republic
Duration: 20 Jul 202123 Jul 2021

Conference

Conference16th Congress of the European Association of Agricultural Economists “Raising the Impact of Agricultural Economics: Multidisciplinarity, Stakeholder Engagement and Novel Approaches”
Country/TerritoryCzech Republic
CityPrague
Period20/07/2123/07/21

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