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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.

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  • 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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    4. Marianne Lefebvre & Pauline Laille & Masha Maslianskaia-Pautrel, 2020. "Individual preferences regarding pesticide-free management of green-spaces: a discret choice experiment with French citizens," Working Papers 2020.02, FAERE - French Association of Environmental and Resource Economists.
    5. Raja Chakir & Maia David & Estelle Gozlan & Aminata Sangare, 2016. "Valuing the Impacts of An Invasive Biological Control Agent: A Choice Experiment on the Asian Ladybird in France," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 619-638, September.
    6. 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.
    7. Damian Tago & Henrik Andersson & Nicolas Treich, 2014. "Pesticides and Health: A Review of Evidence on Health Effects, Valuation of Risks, and Benefit-Cost Analysis," Advances in Health Economics and Health Services Research, in: Preference Measurement in Health, volume 24, pages 203-295, Emerald Group Publishing Limited.
    8. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2020. "The Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods: Do Consumers Really Care?," Studies in Economics 2004, School of Economics, University of Kent.
    9. 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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    11. Glenk, Klaus & Hall, Clare & Liebe, Ulf & Meyerhoff, Jürgen, 2012. "Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley," Food Policy, Elsevier, vol. 37(6), pages 719-731.
    12. 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.
    13. Koistinen, Laura & Pouta, Eija & Heikkila, Jaakko & Forsman-Hugg, Sari & Kotro, Jaana & Makela, Jarmo & Niva, M., 2011. "Impact of meat type, methods of production, fat content, price and carbon footprint information on meat choice," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114710, European Association of Agricultural Economists.

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