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Valuing the Changes in Herbicide Risks Resulting from Adoption of Roundup Ready Soybeans by U.S. Farmers: A Revealed-Preference Approach

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  • Sydorovych, Olha
  • Marra, Michele

Abstract

A revealed-preference–based approach is proposed for valuation of the environmental and human impacts of pesticides. It is assumed that farmers reveal their willingness to pay for improved pesticide safety by selecting a specific product out of the set of available alternatives based on their costs, effectiveness, and safety. The approach is applied to estimate the welfare impact of changed patterns of herbicide use on Roundup Ready soybeans. The results indicate that farmers associate positive values with safety improvements. The aggregate welfare impact of the reduced risk for the U.S. soybean farmers was estimated to be $90.3 million in 2001.

Suggested Citation

  • Sydorovych, Olha & Marra, Michele, 2008. "Valuing the Changes in Herbicide Risks Resulting from Adoption of Roundup Ready Soybeans by U.S. Farmers: A Revealed-Preference Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(3), pages 777-787, December.
  • Handle: RePEc:cup:jagaec:v:40:y:2008:i:03:p:777-787_00
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    References listed on IDEAS

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    1. Maria Travisi, Chiara & Nijkamp, Peter & Vindigni, Gabriella, 2006. "Pesticide risk valuation in empirical economics: a comparative approach," Ecological Economics, Elsevier, vol. 56(4), pages 455-474, April.
    2. Brethour, Cher & Weersink, Alfons, 2001. "An economic evaluation of the environmental benefits from pesticide reduction," Agricultural Economics, Blackwell, vol. 25(2-3), pages 219-226, September.
    3. Cuyno, Leah C. M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics, Blackwell, vol. 25(2-3), pages 227-233, September.
    4. Matin Qaim & Greg Traxler, 2005. "Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 73-86, January.
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    Cited by:

    1. Frisvold, George, 2010. "Resistance Management and Sustainable Use of Agricultural Biotechnology," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188091, International Consortium on Applied Bioeconomy Research (ICABR).
    2. Dong, Fengxia & Mitchell, Paul D. & Hurley, Terrance M. & Frisvold, George B., 2012. "Quantifying Farmer Adoption Intensity for Weed Resistance Management Practices and Its Determinants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125194, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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