Willingness to Pay for Agricultural Environmental Safety: Evidence from a Survey of Milan, Italy, Residents
AbstractThe 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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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.100.
Date of creation: Jul 2004
Date of revision:
Pesticide risks; Food safety; Willingness-to-pay; Choice modeling; Contingent valuation;
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
This paper has been announced in the following NEP Reports:
- NEP-DCM-2004-09-12 (Discrete Choice Models)
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