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Willingness to pay to Reduce a Child’s Pesticide Exposure: Evidence from the Baby Food Market

  • Kelly B. Maguire
  • Nicole Owens
  • Nathalie B. Simon

In this paper we estimate the price premium associated with organic baby food by applying a hedonic model to price and characteristic data for baby food products collected in two cities: Raleigh/Durham, North Carolina and San Jose, California. We use price per jar of baby food as the dependent variable and control for a number of baby food characteristics (e.g., brand, type, and stage) as well as store characteristics (e.g. type of retail establishment). We find the price premium associated with the organic characteristic to be approximately 12 cents per jar. To the extent this premium reflects parents’ preferences regarding the reduction of their baby’s exposure to pesticide residues, our results could be paired up with risk data to estimate the value of the health benefits associated with reduced exposure.

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File URL: http://yosemite.epa.gov/ee/epa/eed.nsf/WPNumber/2002-03/$File/2002-03.PDF
File Function: First version, 2002
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Paper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 200203.

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Length: 28 pages
Date of creation: May 2002
Date of revision: May 2002
Handle: RePEc:nev:wpaper:wp200203
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  1. Estes, Edmund A. & Smith, V. Kerry, 1996. "Price, Quality, And Pesticide Related Health Risk Considerations In Fruit And Vegetable Purchases: An Hedonic Analysis Of Tucson, Arizona Supermarkets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), October.
  2. Wesley Nimon & John C. Beghin, 1998. "Are Eco-Labels Valuable? Evidence from the Apparel Industry," Center for Agricultural and Rural Development (CARD) Publications 99-wp213, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  3. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August.
  4. Portney, Paul R., 1981. "Housing prices, health effects, and valuing reductions in risk of death," Journal of Environmental Economics and Management, Elsevier, vol. 8(1), pages 72-78, March.
  5. Estes, Edmund A., 1986. "Estimation Of Implicit Prices For Green Pepper Quality Attributes Using An Hedonic Framework," Journal of Food Distribution Research, Food Distribution Research Society, vol. 17(2), September.
  6. 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.
  7. Richard Thaler & Sherwin Rosen, 1976. "The Value of Saving a Life: Evidence from the Labor Market," NBER Chapters, in: Household Production and Consumption, pages 265-302 National Bureau of Economic Research, Inc.
  8. Kuchler, Fred & Ralston, Katherine & Unnevehr, Laurian J., 1997. "Reducing pesticide risks to US food consumers: can agricultural research help?," Food Policy, Elsevier, vol. 22(2), pages 119-132, April.
  9. Bayless, Mark, 1982. "Measuring the benefits of air quality improvements: A hedonic salary approach," Journal of Environmental Economics and Management, Elsevier, vol. 9(1), pages 81-99, March.
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