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Willingness to pay for Agricultural Environmental Safety

Author

Listed:
  • Chiara M. Travisi

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

  • Peter Nijkamp

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

The widespread use of pesticides in agriculture provides a particularly complex pattern of multidimensionalnegative side-effects, ranging from food safety related effects to the deterioratian of farmland ecosystems.The assessment of the economic implications of such negative processes is fraught with many uncertainties.This paper presents results of an empirical study recently conducted in the North of Italy aimed at estimatingthe value of reducing the multiple impacts of pesticide use. A statistical technique known as conjoint choiceexperiment is used here in combination with contingent valuation techniques. The experimental design ofchoice modelling provides a natural tool to attach a monetary value to negative environmental effectsassociated with agrochemicals use, In particular, the paper addresses the reduction of farmland biodiversity,groundwater contamination and human intoxicatian. The resulting estimates show that, on average,respondents are prone to accept substantial willingness to pay premia for agricultural goods (in particular,foodstuff) produced in environmentally benign ways.

Suggested Citation

  • Chiara M. Travisi & Peter Nijkamp, 2004. "Willingness to pay for Agricultural Environmental Safety," Tinbergen Institute Discussion Papers 04-070/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040070
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    References listed on IDEAS

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    Cited by:

    1. Patrick Lloyd-Smith & Ewa Zawojska & Wiktor Adamowicz, 2020. "Moving beyond the Contingent Valuation versus Choice Experiment Debate: Presentation Effects in Stated Preference," Land Economics, University of Wisconsin Press, vol. 96(1), pages 1-24.
    2. Travisi, Chiara Maria & Nijkamp, Peter, 2008. "Valuing environmental and health risk in agriculture: A choice experiment approach to pesticides in Italy," Ecological Economics, Elsevier, vol. 67(4), pages 598-607, November.
    3. Chiara M. Travisi & Peter Nijkamp, 2009. "Managing environmental risk in agriculture: a systematic perspective on the potential of quantitative policy-oriented risk valuation," International Journal of Environmental Technology and Management, Inderscience Enterprises Ltd, vol. 11(1/2/3), pages 27-46.
    4. Ekin Birol & Phoebe Koundouri & Yiannis Kountouris, 2008. "Using Economic Valuation Techniques to Inform Water Resources Management in the Southern European, Mediterranean and Developing Countries: A Survey and Critical Appraisal of Available Techniques," DEOS Working Papers 0806, Athens University of Economics and Business.
    5. Anna Paola Antonazzo & Mariantonietta Fiore & Piermichele La Sala & Francesco Cont?, 2015. "Assessing perceptions of wine tourists on organic wine," Economia agro-alimentare, FrancoAngeli Editore, vol. 17(2), pages 57-76.
    6. Chan-Halbrendt, Catherine & Yang, Fang & Thomas, Lynna & Pant, Archana, 2007. "Analysis of Farm Household Preferences in the Management of Invasive Species: The Case of Miconia in Hawaii," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-24.
    7. Antonio Seccia & Antonio Stasi & Luigi Roselli, 2006. "Atteggiamento dei consumatori nei confronti dell'evoluzione del sistema agro-alimentare: l'introduzione di alimenti geneticamente modificati," Economia agro-alimentare, FrancoAngeli Editore, vol. 10(1).

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    More about this item

    Keywords

    pesticide risks; food safety; willingness-to-pay; choice modeling; contingent valuation;
    All these keywords.

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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