Will the “nouveau-riche” (new-rich) waste more food? Evidence from China

Abstract

Purpose: This study aims to test the compensatory consumption theory with the explicit hypothesis that China's new-rich tend to waste relatively more food. Design/methodology/approach: In this study, the authors use Heckman two-step probit model to empirically investigate the new-rich consumption behavior related to food waste. Findings: The results show that new-rich is associated with restaurant leftovers and less likely to take them home, which supports the compensatory consumption hypothesis. Practical implications: Understanding the empirical evidence supporting compensatory consumption theory may improve forecasts, which feed into early warning systems for food insecurity. And it also avoids unreasonable food policies. Originality/value: This research is a first attempt to place food waste in a compensatory-consumption perspective, which sheds light on a new theory for explaining increasing food waste in developing countries.