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A meta-analysis of the willingness to pay for reductions in pesticide risk exposure

  • Raymond J. G. M. Florax
  • Chiara M. Travisi
  • Peter Nijkamp

We review the empirical valuation literature on pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Meta-analysis is then used to investigate the variation in willingness to pay (WTP) estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is 15 per cent greater for medium, and 80 per cent greater for high risk levels, as compared with low risk levels. The income elasticity of reduced pesticide risk exposure is generally not significantly different from zero. Stated preference approaches based on choice experiments and revealed preference provide lower WTP estimates than contingent valuation techniques. Survey design, type of safety device (eco-labelling, integrated pest management, or bans) and chosen payment vehicle are important drivers of the valuation results. Copyright 2005, Oxford University Press.

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Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 32 (2005)
Issue (Month): 4 (December)
Pages: 441-467

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Handle: RePEc:oup:erevae:v:32:y:2005:i:4:p:441-467
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  8. Lohr, Luanne & Park, Timothy & Higley, Leon, 1999. "Farmer risk assessment for voluntary insecticide reduction," Ecological Economics, Elsevier, vol. 30(1), pages 121-130, July.
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  14. 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 of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
  15. Smith, V Kerry & Desvousges, William H, 1987. "An Empirical Analysis of the Economic Value of Risk Changes," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 89-114, February.
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  19. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
  20. Mullen, Jeffrey D. & Norton, George W. & Reaves, Dixie Watts, 1997. "Economic Analysis Of Environmental Benefits Of Integrated Pest Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
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  22. Janusz R. Mrozek & Laura O. Taylor, 2002. "What determines the value of life? a meta-analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(2), pages 253-270.
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