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European Review of Agricultural Economics Advance Access originally published online on October 6, 2005
European Review of Agricultural Economics 2005 32(4):441-467; doi:10.1093/erae/jbi025
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Right arrow D61 - Allocative Efficiency; Cost-Benefit Analysis
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2005; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

A meta-analysis of the willingness to pay for reductions in pesticide risk exposure

Raymond J. G. M. Florax

Purdue University, West Lafayette, IN 47907, USA, and Vrije Universiteit, Amsterdam, The Netherlands

Chiara M. Travisi

Polytechnic of Milan, Italy and Fondazione Eni Enrico Mattei (FEEM), Milan, Italy

Peter Nijkamp

Vrije Universiteit, and Tinbergen Institute, Amsterdam, The Netherlands

Corrresponding author: Raymond J. G. M. Florax, Department of Agricultural Economics, 403 W. State Street, West Lafayette, IN 47907-2056, USA. E-mail: rflorax{at}purdue.edu

Received July 2004; final version received July 2005

We review the empirical valuation literature on pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Meta-analysis is then used to investigate the variation in willingness to pay (WTP) estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is 15 per cent greater for medium, and 80 per cent greater for high risk levels, as compared with low risk levels. The income elasticity of reduced pesticide risk exposure is generally not significantly different from zero. Stated preference approaches based on choice experiments and revealed preference provide lower WTP estimates than contingent valuation techniques. Survey design, type of safety device (eco-labelling, integrated pest management, or bans) and chosen payment vehicle are important drivers of the valuation results.

Keywords: pesticide risk, willingness to pay, meta-analysis

JEL classification: H23, I12, Q25, Q51


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