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Consumer Response to Integrated Pest Management and Organic Agriculture: An Econometric Analysis

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  • Govindasamy, Ramu
  • Italia, John

Abstract

While several studies have presented aggregate, descriptive illustrations of consumer response to IPM, the willingness-to-purchase and willingness-to-pay for IPM produce as a function of demographic characteristics has not received the exhaustive research attention that has focused on organic produce. The objective of this study was to empirically evaluate which demographic characteristics cause consumers to be more likely to purchase IPM grown produce. A hypothetical willingness-to-purchase model for IPM produce as well as willingness-to-pay models for both IPM and organic produce are presented. A non-hypothetical analysis also predicts consumers who strictly purchase only conventional produce. Income was found to be the most significant determinant of willingness-to-purchase IPM grown produce. Participants with higher annual incomes were more likely to express an interest in purchasing IPM produce and also appeared less likely to strictly purchase conventional produce. Those whose frequently purchase organic produce, those who visit farmers markets and those who live in suburban areas were all found to be more likely to purchase IPM grown produce. The results also indicate that females, those with higher annual incomes, younger individuals, and those who frequently purchase organic produce are all more likely to pay a premium for both IPM and organically grown produce. Overall, the results of this survey give insight into the likely consumer response to produce that is labeled as “IPM Grown.” However, before the average consumer exhibits the same level of interest in IPM as the sample in this study, some mechanism must be developed to educate the public about IPM.

Suggested Citation

  • Govindasamy, Ramu & Italia, John, 1997. "Consumer Response to Integrated Pest Management and Organic Agriculture: An Econometric Analysis," P Series 36727, Rutgers University, Department of Agricultural, Food and Resource Economics.
  • Handle: RePEc:ags:rutdps:36727
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    File URL: http://purl.umn.edu/36727
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rimal, Arbindra & Moon, Wanki & Balasubramanian, Siva K., 2006. "Perceived Risks of Agro-Biotechnology and Organic Food Purchases in the United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(02), July.
    2. Peter Nijkamp & Chiara Maria Travisi & Gabriella Vindigni, 2002. "Pesticide Risk Valuation in Empirical Economics," Tinbergen Institute Discussion Papers 02-112/3, Tinbergen Institute.
    3. Renck, Ashley Wood, 2001. "Evaluating Changes In Agricultural Market Structure," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36121, Western Agricultural Economics Association.
    4. 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.
    5. Govindasamy, Ramu & Italia, John & Adelaja, Adesoji, 2001. "Predicting Willingness-to-Pay a Premium for Integrated Pest Management Produce: A Logistic Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(02), pages 151-159, October.
    6. Greene, Catherine R., 2001. "U.S. Organic Farming Emerges in the 1990s: Adoption of Certified Systems," Agricultural Information Bulletins 33777, United States Department of Agriculture, Economic Research Service.
    7. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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