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Contingent Valuation In Food Policy Analysis: A Case Study Of A Pesticide-Residue Risk Reduction

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  • Buzby, Jean C.
  • Ready, Richard C.
  • Skees, Jerry R.

Abstract

This study demonstrates how contingent valuation techniques can be used in a cost-benefit analysis of a food safety policy issue. The analysis focuses on banning a specific post harvest pesticide used in fresh grapefruit packinghouses. Benefits of the ban are measured using consumers' aggregated willingness to pay (WTP) for safer grapefruit. A national contingent valuation survey used the payment card method to obtain WTP data. Costs of the ban stem predominantly from increased post harvest losses and were estimated using a model of the market for Florida grapefruit. Results indicate that benefits of the ban outweigh costs.

Suggested Citation

  • 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(2), pages 1-13, December.
  • Handle: RePEc:ags:joaaec:15278
    DOI: 10.22004/ag.econ.15278
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    References listed on IDEAS

    as
    1. Buzby, Jean C. & Spreen, Thomas H., 1995. "The Impacts On The U.S. Grapefruit Industry From Banning The Pesticide Sodium Ortho-Phenylphenate," Journal of Food Distribution Research, Food Distribution Research Society, vol. 26(2), pages 1-8, September.
    2. Hoehn, John P. & Randall, Alan, 1987. "A satisfactory benefit cost indicator from contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 226-247, September.
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    Agricultural and Food Policy;

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