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A meta-analysis of the willingness to pay for reductions in pesticide risk exposure

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Author Info
Raymond J. G. M. Florax
Chiara M. Travisi
Peter Nijkamp

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Abstract

We review the empirical valuation literature on pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Meta-analysis is then used to investigate the variation in willingness to pay (WTP) estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is 15 per cent greater for medium, and 80 per cent greater for high risk levels, as compared with low risk levels. The income elasticity of reduced pesticide risk exposure is generally not significantly different from zero. Stated preference approaches based on choice experiments and revealed preference provide lower WTP estimates than contingent valuation techniques. Survey design, type of safety device (eco-labelling, integrated pest management, or bans) and chosen payment vehicle are important drivers of the valuation results. Copyright 2005, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 32 (2005)
Issue (Month): 4 (December)
Pages: 441-467
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Handle: RePEc:oup:erevae:v:32:y:2005:i:4:p:441-467

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Roosen, Jutta & Fox, John A. & Hennessy, David A. & Schreiber, Alan, 1998. "Consumers' Valuation Of Insecticide Use Restrictions: An Application To Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December. [Downloadable!]
  2. Tsu-Tan Fu & Jin-Tan Liu & James K. Hammitt, 1999. "Consumer Willingness to Pay for Low-Pesticide Fresh Produce in Taiwan," Journal of Agricultural Economics, Blackwell Publishing, vol. 50(2), pages 220-233. [Downloadable!] (restricted)
  3. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November. [Downloadable!] (restricted)
  4. Vivien Foster & Susana Mourato, 2000. "Valuing the Multiple Impacts of Pesticide Use in the UK: A Contingent Ranking Approach," Journal of Agricultural Economics, Blackwell Publishing, vol. 51(1), pages 1-21. [Downloadable!] (restricted)
  5. Rosenberger, Randall S. & Loomis, John B., 2000. "Panel Stratification In Meta-Analysis Of Economic Studies: An Investigation Of Its Effects In The Recreation Valuation Literature," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December. [Downloadable!]
  6. Brethour, Cher & Weersink, Alfons, 2001. "An economic evaluation of the environmental benefits from pesticide reduction," Agricultural Economics, Blackwell, vol. 25(2-3), pages 219-226, September. [Downloadable!] (restricted)
  7. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr. [Downloadable!] (restricted)
  8. Johannesson, Magnus & Johansson, Per-Olov & O'Conor, Richard M., 1996. "The Value of Private Safety versus the Value of Public Safety," Working Paper Series in Economics and Finance 103, Stockholm School of Economics.
    Other versions:
  9. Florax, R.J.G.M., 2002. "Accounting for dependence among study results in Meta-Analysis: methodology and applications to the valuation and use of natural resources," Serie Research Memoranda 0005, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  10. Mullen, Jeffrey D. & Norton, George W. & Reaves, Dixie W., 1997. "Economic Analysis Of Environmental Benefits Of Integrated Pest Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December. [Downloadable!]
  11. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer. [Downloadable!] (restricted)
  12. V. Smith & Subhrendu Pattanayak, 2002. "Is Meta-Analysis a Noah's Ark for Non-Market Valuation?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 271-296, June. [Downloadable!] (restricted)
  13. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308. [Downloadable!] (restricted)
  14. Smith, V Kerry & Desvousges, William H, 1987. "An Empirical Analysis of the Economic Value of Risk Changes," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 89-114, February. [Downloadable!] (restricted)
  15. Cuyno, Leah C. M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics, Blackwell, vol. 25(2-3), pages 227-233, September. [Downloadable!] (restricted)
  16. Viscusi, W Kip & O'Connor, Charles J, 1984. "Adaptive Responses to Chemical Labeling: Are Workers Bayesian Decision Makers?," American Economic Review, American Economic Association, vol. 74(5), pages 942-56, December. [Downloadable!] (restricted)
  17. Raymond J.G.M. Florax & Henri L.F. de Groot & Ruud A. de Mooij, 2002. "Meta-analysis: A Tool for Upgrading Inputs of Macroeconomic Policy Models," Tinbergen Institute Discussion Papers 02-041/3, Tinbergen Institute. [Downloadable!]
  18. Florax, Raymond J.G.M., 2001. "Methodological pitfalls in meta-analysis: publication bias," Serie Research Memoranda 0028, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  19. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December. [Downloadable!]
  20. Baker, Gregory A. & Crosbie, Peter J., 1993. "Measuring Food Safety Preferences: Identifying Consumer Segments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December. [Downloadable!]
  21. Lohr, Luanne & Park, Timothy & Higley, Leon, 1999. "Farmer risk assessment for voluntary insecticide reduction," Ecological Economics, Elsevier, vol. 30(1), pages 121-130, July. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bazoche, P. & Deola, C. & Soler, L.G., 2008. "An experimental study of wine consumers’ willingness to pay for environmental characteristics," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43651, European Association of Agricultural Economists. [Downloadable!]
  2. Sydorovych, Olha & Marra, Michele, 2008. "Valuing the Changes in Herbicide Risks Resulting from Adoption of Roundup Ready Soybeans by U.S. Farmers: An Empirical Analysis of Revealed Value Estimates," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 8215, Southern Agricultural Economics Association. [Downloadable!]
  3. Laura de Dominicis & Henri L.F. de Groot & Raymond J.G.M. Florax, 2006. "Growth and Inequality: A Meta-Analysis," Tinbergen Institute Discussion Papers 06-064/3, Tinbergen Institute. [Downloadable!]
  4. V. Kerry Smith & Carol Mansfield & Aaron Strong, 2008. "Public or Private Production of Food Safety: What Do U.S. Consumers Want?," NBER Working Papers 14287, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March. [Downloadable!] (restricted)
  6. Hildegard Garming & Hermann Waibel, 2009. "Pesticides and farmer health in Nicaragua: a willingness-to-pay approach to evaluation," The European Journal of Health Economics, Springer, vol. 10(2), pages 125-133, May. [Downloadable!] (restricted)
  7. Julie A. Caswell & Siny Joseph, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Working Papers 2007-4, University of Massachusetts Amherst, Department of Resource Economics. [Downloadable!]
  8. G. Cornelis van Kooten & Susanna Laaksonen-Craig & Yichuan Wang, 2007. "Costs of Creating Carbon Offset Credits via Forestry Activities: A Meta-Regression Analysis," Working Papers 2007-03, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group. [Downloadable!]
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