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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)

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

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References

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  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  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. 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.
  14. 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.
  15. 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.
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Citations

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Cited by:
  1. Travisi, C.M. & Nijkamp, P., 2009. "Managing environmental risk in agriculture: a systematic perspective on the potential of quantitative policy-oriented risk valuation," Serie Research Memoranda 0043, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. Travisi, Chiara Maria & Nijkamp, Peter, 2008. "Valuing environmental and health risk in agriculture: A choice experiment approach to pesticides in Italy," Ecological Economics, Elsevier, vol. 67(4), pages 598-607, November.
  3. Antonio Seccia & Antonio Stasi & Luigi Roselli, 2006. "Atteggiamento dei consumatori nei confronti dell'evoluzione del sistema agro-alimentare: l'introduzione di alimenti geneticamente modificati," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 10(1).

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