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Examining the Japanese seaweed market before and after the earthquake using a partial adjustment model of LA-AIDS

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Abstract

This study examines the changes in market demand for wakame seaweed before and after the Great East Japan Earthquake. For this purpose, we use scanner data comprising prices, quantity, brands, countries/places of origin, and product types of wakame for ten regional markets during the period 2005–2014. The Japanese seafood market suffered from the direct and indirect impact of the earthquake in 2011. Serious damage caused by the earthquake and tsunamis would have at least caused significant changes in the demand elasticities for wakame. However, using a linear-approximated almost ideal demand system (LA-AIDS) model, we find that, although disparities exist in the estimated elasticities between the pre- and post-earthquake periods, there is no significant change in the demand for wakame. Moreover, own-price elasticities of Sanriku wakame did not change even after the earthquake, and cross-price elasticities of Sanriku and its rival, Naruto, did not reveal a remarkable structural change from substitution to complementation or vice versa. This study concludes that the damage to the wakame seaweed market in Japan is at least limited.

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Acknowledgments

We appreciate that this study is funded mainly by the Agriculture, Forestry, and Fisheries Council as part of the “Development research of sustainable production system in fisheries and aquacultures” project, as well as by JSPS Kakenhi Grant Number 26850145.

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Correspondence to Hiroki Wakamatsu.

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Wakamatsu, H., Miyata, T. Examining the Japanese seaweed market before and after the earthquake using a partial adjustment model of LA-AIDS. Fish Sci 82, 549–559 (2016). https://doi.org/10.1007/s12562-016-0985-9

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  • DOI: https://doi.org/10.1007/s12562-016-0985-9

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