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

Author

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

Abstract

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.

Suggested Citation

  • Kelly B. Maguire & Nicole Owens & Nathalie B. Simon, 2002. "Willingness to pay to Reduce a Child’s Pesticide Exposure: Evidence from the Baby Food Market," NCEE Working Paper Series 200203, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2002.
  • Handle: RePEc:nev:wpaper:wp200203
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    File URL: https://www.epa.gov/environmental-economics/working-paper-willingness-pay-reduce-childs-pesticide-exposure-evidence-baby
    File Function: First version, 2002
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    References listed on IDEAS

    as
    1. 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.
    2. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, pages 394-404.
    3. 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.
    4. 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.
    5. Harris, J. Michael, 1997. "Consumers Pay a Premium for Organic Baby Foods," Food Review: The Magazine of Food Economics, United States Department of Agriculture, Economic Research Service, vol. 20(2).
    6. 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.
    7. Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 801-811.
    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. 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.
    10. 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.
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    Cited by:

    1. Brouhle, Keith & Khanna, Madhu, 2012. "Determinants of participation versus consumption in the Nordic Swan eco-labeled market," Ecological Economics, Elsevier, pages 142-151.

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