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Economic crises and organic food consumption: A Danish perspective

DOI
https://doi.org/10.3280/ecag2025oa20221
Submitted
maggio 20, 2025
Published
2025-12-01

Abstract

The study aims to analyze the impact of the global economic crisis in 2008 and the COVID-19 crisis in 2020 on the consumption of organic food in Denmark, one of the largest markets for organic food in Europe. The Error Correction Model (ECM) has been implemented, with modifications applying the Markov Regime Switching (MRS) methodology o integrate breakpoint analysis. It has been confirmed a statistically significant dependency of organic food consumption on disposable income during both crisis and non-crisis periods.
As the identified effect is positive during non-crisis periods and negative during crises, it has been confirmed that organic food consumption significantly increases when disposable income decreases during a crisis. The use of the Error Correction Model (ECM) with modifications incorporating the Markov Regime Switching (MRS) methodology allows the integration of breakpoint analysis and provides a more realistic description of the evolution of the variables under study. The study is designed to explore overall attitudes towards consumption and aims to measure the influence of disposable income on organic food consumption. It also seeks to analyze how this impact evolved over time and during the aforementioned crises.

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