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Pesticides, Preference Heterogeneity and Environmental Taxes

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Author Info
Ali Chalak
Kelvin Balcombe
Alastair Bailey
Iain Fraser

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Abstract

In this paper we present results from two choice experiments (CE), designed to take account of the different negative externalities associated with pesticide use in agricultural production. For cereal production, the most probable impact of pesticide use is a reduction in environmental quality. For fruit and vegetable production, the negative externality is on consumer health. Using latent class models we find evidence of the presence of preference heterogeneity in addition to reasonably high willingness to pay (WTP) estimates for a reduction in the use of pesticides for both environmental quality and consumer health. To place our WTP estimates in a policy context we convert them into an equivalent pesticide tax by type of externality. Our tax estimates suggest that pesticide taxes based on the primary externality resulting from a particular mode of agricultural production are a credible policy option that warrants further consideration. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The Agricultural Economics Society.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1477-9552.2008.00163.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Agricultural Economics.

Volume (Year): 59 (2008)
Issue (Month): 3 (09)
Pages: 537-554
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Handle: RePEc:bla:jageco:v:59:y:2008:i:3:p:537-554

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X

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  1. Kloos, Julia & Tsegai, Daniel W., 2009. "Preferences for domestic water services in the Middle Olifants sub-basin of South Africa," Discussion Papers 49970, University of Bonn, Center for Development Research (ZEF). [Downloadable!]
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This page was last updated on 2009-11-22.

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