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Willingness to pay to Reduce a Child’s Pesticide Exposure: Evidence from the Baby Food Market

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Author Info

  • Kelly B. Maguire
  • Nicole Owens
  • Nathalie B. Simon

Abstract

In this paper we estimate the price premium associated with organic baby food by applying a hedonic model to price and characteristic data for baby food products collected in two cities: Raleigh/Durham, North Carolina and San Jose, California. We use price per jar of baby food as the dependent variable and control for a number of baby food characteristics (e.g., brand, type, and stage) as well as store characteristics (e.g. type of retail establishment). We find the price premium associated with the organic characteristic to be approximately 12 cents per jar. To the extent this premium reflects parents’ preferences regarding the reduction of their baby’s exposure to pesticide residues, our results could be paired up with risk data to estimate the value of the health benefits associated with reduced exposure.

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File URL: http://yosemite.epa.gov/ee/epa/eed.nsf/WPNumber/2002-03/$File/2002-03.PDF
File Function: First version, 2002
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Bibliographic Info

Paper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 200203.

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Length: 28 pages
Date of creation: May 2002
Date of revision: May 2002
Handle: RePEc:nev:wpaper:wp200203

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Related research

Keywords: organic foods; hedonic model; willingness to pay; children;

References

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  1. 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.
  2. Estes, Edmund A. & Smith, V. Kerry, 1996. "Price, Quality, And Pesticide Related Health Risk Considerations In Fruit And Vegetable Purchases: An Hedonic Analysis Of Tucson, Arizona Supermarkets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), October.
  3. Nimon, R. Wesley & Beghin, John C., 1998. "Are Eco-Labels Valuable? Evidence From The Apparel Industry," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21016, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Portney, Paul R., 1981. "Housing prices, health effects, and valuing reductions in risk of death," Journal of Environmental Economics and Management, Elsevier, vol. 8(1), pages 72-78, March.
  5. Richard Thaler & Sherwin Rosen, 1976. "The Value of Saving a Life: Evidence from the Labor Market," NBER Chapters, in: Household Production and Consumption, pages 265-302 National Bureau of Economic Research, Inc.
  6. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August.
  7. Kuchler, Fred & Ralston, Katherine & Unnevehr, Laurian J., 1997. "Reducing pesticide risks to US food consumers: can agricultural research help?," Food Policy, Elsevier, vol. 22(2), pages 119-132, April.
  8. Estes, Edmund A., 1986. "Estimation Of Implicit Prices For Green Pepper Quality Attributes Using An Hedonic Framework," Journal of Food Distribution Research, Food Distribution Research Society, vol. 17(2), September.
  9. Bayless, Mark, 1982. "Measuring the benefits of air quality improvements: A hedonic salary approach," Journal of Environmental Economics and Management, Elsevier, vol. 9(1), pages 81-99, March.
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Cited by:
  1. Brouhle, Keith & Khanna, Madhu, 2012. "Determinants of participation versus consumption in the Nordic Swan eco-labeled market," Ecological Economics, Elsevier, vol. 73(C), pages 142-151.

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