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

38 Pages Posted: 10 Sep 2004

See all articles by Chiara Travisi

Chiara Travisi

Fondazione Eni Enrico Mattei (FEEM)

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics; Tinbergen Institute

Raymond J.G.M. Florax

Purdue University; VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Date Written: July 2004

Abstract

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.

Keywords: Pesticide risk, Willingness to pay, Meta-analysis

JEL Classification: D18, H23, I12, Q25

Suggested Citation

Travisi, Chiara and Nijkamp, Peter and Florax, Raymond J.G.M., A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure (July 2004). Available at SSRN: https://ssrn.com/abstract=569110 or http://dx.doi.org/10.2139/ssrn.569110

Chiara Travisi

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

Peter Nijkamp

VU University of Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 4446091 (Phone)
+31 20 4445611 (Fax)

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Raymond J.G.M. Florax (Contact Author)

Purdue University ( email )

West Lafayette, IN 47907-1145
United States
(765) 494-4300 (Phone)
(765) 494-9176 (Fax)

HOME PAGE: http://web.ics.purdue.edu/~rflorax/

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 444 6092 (Phone)
+31 20 444 6004 (Fax)

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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