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A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure

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

Abstract

The use of environmental policy instruments such as eco-labelling and pesticide taxes should preferably be based on disaggregate estimates of the individuals' willingness to pay (WTP) for pesticide risk reductions. We review the empirical valuation literature dealing with pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Subsequently, we use meta-analysis to investigate the variation in WTP estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is approximately 15% greater for medium, and 80% greater for high risk-levels, as compared to low risk levels. The income elasticity of pesticide risk exposure is generally positive, although not overly robust. Most results indicate that the demand for human health and environmental safety is highly elastic. We also show that geographical differences, characteristics of the survey, and the type safety device (eco-labelling, integrated management, or bans) are important drivers of the valuation results.

Suggested Citation

  • Florax, Raymond J.G.M. & Travisi, Chiara M. & Nijkamp, Peter, 2005. "A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure," 2005 Annual meeting, July 24-27, Providence, RI 19524, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19524
    DOI: 10.22004/ag.econ.19524
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    Keywords

    Institutional and Behavioral Economics;

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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