Farmers as prosumers: Evidence from cadmium-contaminated rice in China

Abstract

We study farmer responses in rice production and consumption to China's cadmium-contaminated rice (CCR) event in 2013. We show that the CCR event reduced both rice production and consumption but did not significantly affect the quantity and price of rice sold by farmers in areas affected by cadmium pollution. Households with young children reduced their rice production and consumption by a larger amount than others, whereas the responses are reversed for households with elderly people. The decrease in rice production was mainly driven by the decrease in farmers' consumption of self-produced rice instead of through price or income channels, indicating that farmers are prosumers who make production decisions not purely to maximize profit but also to satisfy their own consumption needs. Farmers being prosumers helped promote production side responses to new information about food safety.