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Contingent Valuation in Food Policy Analysis: A Case Study of a Pesticide-Residue Risk Reduction

Author

Listed:
  • 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 postharvest 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 postharvest 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, Cambridge University Press, vol. 27(2), pages 613-625, December.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:02:p:613-625_02
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