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European Review of Agricultural Economics Advance Access published online on October 6, 2005
European Review of Agricultural Economics, doi:10.1093/erae/jbi025
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2005; all rights reserved

Article

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

Raymond J. G. M. Florax 1*, Chiara M. Travisi 2, and Peter Nijkamp 3

1 Department of Agricultural Economics, Purdue University, 403 W. State Street, West Lafayette, IN 47907-2056, USA, and Vrije Universiteit, Amsterdam, The Netherlands
2 Polytechnic of Milan, Italy and Fondazione Eni Enrico Mattei (FEEM), Milan, Italy
3 Vrije Universiteit, and Tinbergen Institute, Amsterdam, The Netherlands

* To whom correspondence should be addressed.
Raymond J. G. M. Florax, E-mail: rflorax{at}purdue.edu


  Abstract

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.
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