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Willingness to pay for Agricultural Environmental Safety

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Author Info

  • Chiara M. Travisi

    ()
    (Department of Management Economics and Industrial Engineering, Polytechnic of Milan)

  • Peter Nijkamp

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

The widespread use of pesticides in agriculture provides a particularly complex pattern of multidimensionalnegative side-effects, ranging from food safety related effects to the deterioratian of farmland ecosystems.The assessment of the economic implications of such negative processes is fraught with many uncertainties.This paper presents results of an empirical study recently conducted in the North of Italy aimed at estimatingthe value of reducing the multiple impacts of pesticide use. A statistical technique known as conjoint choiceexperiment is used here in combination with contingent valuation techniques. The experimental design ofchoice modelling provides a natural tool to attach a monetary value to negative environmental effectsassociated with agrochemicals use, In particular, the paper addresses the reduction of farmland biodiversity,groundwater contamination and human intoxicatian. The resulting estimates show that, on average,respondents are prone to accept substantial willingness to pay premia for agricultural goods (in particular,foodstuff) produced in environmentally benign ways.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-070/3.

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Date of creation: 21 Jun 2004
Date of revision:
Handle: RePEc:dgr:uvatin:20040070

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Web page: http://www.tinbergen.nl

Related research

Keywords: pesticide risks; food safety; willingness-to-pay; choice modeling; contingent valuation;

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References

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  1. R.K. Blamey & Mick S. Common & John C. Quiggin, 1995. "Respondents To Contingent Valuation Surveys: Consumers Or Citizens?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 263-288, December.
  2. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
  3. Vivien Foster & Susana Mourato, 2000. "Valuing the Multiple Impacts of Pesticide Use in the UK: A Contingent Ranking Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 1-21.
  4. 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.
  5. Buzby, Jean C. & Ready, Richard C. & Skees, Jerry R., 1995. "Contingent Valuation In Food Policy Analysis: A Case Study Of A Pesticide-Residue Risk Reduction," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(02), December.
  6. 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.
  7. 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.
  8. 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.
  9. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
  10. Opaluch James J. & Swallow Stephen K. & Weaver Thomas & Wessells Christopher W. & Wichelns Dennis, 1993. "Evaluating Impacts from Noxious Facilities: Including Public Preferences in Current Siting Mechanisms," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 41-59, January.
  11. Baker, Gregory A., 1999. "Consumer Preferences For Food Safety Attributes In Fresh Apples: Market Segments, Consumer Characteristics, And Marketing Opportunities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
  12. Mullen, Jeffrey D. & Norton, George W. & Reaves, Dixie Watts, 1997. "Economic Analysis Of Environmental Benefits Of Integrated Pest Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
  13. Weisten, K. & Hoen, H.F. & Navrud, S. & Strand, J., 1993. "Valuing Biodiversity in Norwegian Forests: A Contingent Valuation Study with Multiple Bias Testing," Memorandum 07/1993, Oslo University, Department of Economics.
  14. 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, Wiley Blackwell, vol. 50(2), pages 220-233.
  15. Thomas H. Stevens & Jaime Echeverria & Ronald J. Glass & Tim Hager & Thomas A. More, 1991. "Measuring the Existence Value of Wildlife: What Do CVM Estimates Really Show?," Land Economics, University of Wisconsin Press, vol. 67(4), pages 390-400.
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Cited by:
  1. Chan-Halbrendt, Catherine & Yang, Fang & Thomas, Lynna & Pant, Archana, 2007. "Analysis of Farm Household Preferences in the Management of Invasive Species: The Case of Miconia in Hawaii," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 10(02).

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