(upbeat music)
-: Did you know that one third of all food produced
is either lost or wasted
as estimated by the Food and Agricultural Organization
of the United Nations?
In fact, if food waste was a country,
it would be the third largest greenhouse gas contributor
next to China and the United States.
Unfortunately though, much of this food waste
in developed countries simply comes from a consumer's desire
to have aesthetically-pleasing produce.
This results in blemished produce,
or produce that is nutritionally OK,
but it does not meet the aesthetic standards needed
to go to the market, to be discarded.
For example, because this tomato
does not meet the USDA's highest standard
of being perfectly round and unscarred,
it would not go to the market
because consumers would be less likely to purchase it,
and it's ending up being discarded.
Therefore, my project uses a non-hypothetical option
to ask consumers their maximum willingness to pay,
or their maximum bid, for sweet potatoes
with five different skinning level injuries.
We had 88 participants of varying demographic backgrounds
and asked them each their maximum willingness to pay
for each of these five different sweet potatoes
before and after a set of information was given.
This information varied depending upon
the group you were in.
Group one received information
on how aesthetic preferences contribute to food waste.
Group two received the same information
and received information
on the environmental impacts of food waste.
From this graph, it appears
that giving consumers information
on how aesthetic preferences contribute to food waste alone
creates a 17 cents per pound premium.
Adding this information
about the environmental impacts of food waste
creates approximately a 33 cents per pound premium.
While these numbers are based upon average bids alone,
we are currently estimating econometric models to determine
if these are statistically significant
and what demographic backgrounds contribute
to the demand for these products.
My research has implications
for the economic research service
as they continue to further investigate methods
and opportunities to mitigate food waste.
Thank you.
(upbeat music)