Price, internet penetration and green food industry development: Based on the interaction between demand and supply

Abstract

The development of the green food industry can not only meet people’s demand for high-quality food and promote the sustainable development of the ecological environment but also carry the additional expectation of realizing rural revitalization. Based on the data of Heilongjiang province from 2000–2021, we examined the dynamic effects of price fluctuations and Internet penetration on the green food industry using a system dynamics model. The empirical results showed that both price fluctuations and Internet penetration affect people’s demand for green food, which in turn affects the development of the green food industry. The inhibitory effect of price fluctuation on green food industry is more obvious in the early stage of green food industry development, and Internet penetration always significantly promotes the development of green food industry. Moreover, the Internet penetration can effectively mitigate the negative impact of price fluctuation on the green food industry, and the impact becomes more significant with the increase of Internet penetration. The results of this study can help promote the sustainable development of the green food industry.