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Willingness to Pay for Agricultural Environmental Safety: Evidence from a Survey of Milan, Italy, Residents

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Author Info
Chiara M. Travisi (Department of Management Economics and Industrial Engineering, Polytechnic of Milan and Fondazione Eni Enrico Mattei)
Peter Nijkamp (Department of Spatial Economics, Free University and Tinbergen Institute)

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Abstract

The widespread use of pesticides in agriculture provides a particularly complex pattern of multidimensional negative side-effects, ranging from food safety related effects to the deterioration 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 estimating the value of reducing the multiple impacts of pesticide use. A statistical technique known as conjoint choice experiment is used here in combination with contingent valuation techniques. The experimental design of choice modelling provides a natural tool to attach a monetary value to negative environmental effects associated with agrochemicals use. In particular, the paper addresses the reduction of farmland biodiversity, groundwater contamination and human intoxication. 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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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.100.

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Date of creation: Jul 2004
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Handle: RePEc:fem:femwpa:2004.100

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Related research
Keywords: Pesticide risks; Food safety; Willingness-to-pay; Choice modeling; Contingent valuation;

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Find related papers by JEL classification:
C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
I12 - Health, Education, and Welfare - - Health - - - Health Production
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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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. 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.
  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. 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)
  4. Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier. [Downloadable!] (restricted)
  5. 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)
  6. 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!]
  7. 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. [Downloadable!] (restricted)
  8. Diamond, Peter A & Hausman, Jerry A, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall. [Downloadable!] (restricted)
  9. Blamey, R. & Common, M. & Quiggin, J., 1995. "Respondents To Contingent Valuation Surveys: Consumers Or Citizens?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December. [Downloadable!]
  10. 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)
  11. 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. [Downloadable!] (restricted)
  12. 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!]
  13. 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!]
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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. Roselli, Luigi & Seccia, Antonio & Stasi, Antonio, 2006. "Atteggiamento dei consumatori nei confronti dell’evoluzione del sistema agro-alimentare: L’introduzione di alimenti geneticamente modificati
    [Consumers' attitude towards the new element of evol
    ," MPRA Paper 11776, University Library of Munich, Germany. [Downloadable!]
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