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

  • Chiara M. Travisi

    (Department of Management Economics and Industrial Engineering, Polytechnic of Milan)

  • Peter Nijkamp

    (Department of Spatial Economics, Free University and Tinbergen Institute)

  • Raymond J. G. M. Florax

    (Department of Spatial Economics, Free University and Department of Agricultural Economics, Purdue University)

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.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.101.

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Date of creation: Jul 2004
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Handle: RePEc:fem:femwpa:2004.101
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  1. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
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  9. Florax, Raymond J.G.M., 2001. "Methodological pitfalls in meta-analysis: publication bias," Serie Research Memoranda 0028, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  10. 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.
  11. 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.
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  14. Roosen, Jutta & Fox, John A. & Hennessy, David A. & Schreiber, Alan, 1998. "Consumers' Valuation Of Insecticide Use Restrictions: An Application To Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
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  22. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  23. Florax, R.J.G.M., 2002. "Accounting for dependence among study results in Meta-Analysis: methodology and applications to the valuation and use of natural resources," Serie Research Memoranda 0005, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  24. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
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  26. Tsu-Tan Fu & Jin-Tan Liu & James K. Hammitt, 1999. "Consumer Willingness to Pay for Low-Pesticide Fresh Produce in Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 220-233.
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