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Pesticides, Preference Heterogeneity and Environmental Taxes

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  • Ali Chalak
  • Kelvin Balcombe
  • Alastair Bailey
  • Iain Fraser

Abstract

In this paper we present results from two choice experiments (CE), designed to take account of the different negative externalities associated with pesticide use in agricultural production. For cereal production, the most probable impact of pesticide use is a reduction in environmental quality. For fruit and vegetable production, the negative externality is on consumer health. Using latent class models we find evidence of the presence of preference heterogeneity in addition to reasonably high willingness to pay (WTP) estimates for a reduction in the use of pesticides for both environmental quality and consumer health. To place our WTP estimates in a policy context we convert them into an equivalent pesticide tax by type of externality. Our tax estimates suggest that pesticide taxes based on the primary externality resulting from a particular mode of agricultural production are a credible policy option that warrants further consideration.

Suggested Citation

  • Ali Chalak & Kelvin Balcombe & Alastair Bailey & Iain Fraser, 2008. "Pesticides, Preference Heterogeneity and Environmental Taxes," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 537-554, September.
    • Handle: RePEc:bla:jageco:v:59:y:2008:i:3:p:537-554
    DOI: 10.1111/j.1477-9552.2008.00163.x
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    7. Cokou Patrice Kpadé & Edouard Roméo Mensah & Michel Fok & Jupiter Ndjeunga, 2017. "Cotton farmers’ willingness to pay for pest management services in northern Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 105-114, January.
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    10. Agossadou, Arsene J. & McCallum, Chloe & Siegrist, Michael & Finger, Robert & Nayga, Rodolfo M., 2024. "The Effect of Health and Environment Pesticide Risk Information on Consumers’ Preferences for Low-Pesticide Wine: A Cross Country Analysis," 2024 Annual Meeting, July 28-30, New Orleans, LA 343877, Agricultural and Applied Economics Association.
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    12. Pauline Laille & Marianne Lefebvre & Masha Maslianskaia-Pautrel, 2020. "Individual preferences regarding pesticide-free management of green-spaces: a discret choice experiment with French citizens," Working Papers hal-02867639, HAL.
    13. Amalie Bjørnåvold & Maia David & Vincent Mermet-Bijon & Olivier Beaumais & Romain Crastes Dit Sourd & Steven van Passel & Vincent Martinet, 2023. "To tax or to ban? A discrete choice experiment to elicit public preferences for phasing out glyphosate use in agriculture [Taxer ou interdire ? Une expérience de choix discret pour obtenir les préf," Post-Print hal-04057671, HAL.
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