Consumers' Valuation of Insecticide Use Restrictions: An Application to Apples

Consumers' Valuation of Insecticide Use Restrictions: An Application to Apples

Economic assessments of pesticide regulations typically focus on producer impacts and generally ignore possible changes in product demand. These changes may be nonnegligible if real and/or perceived product attributes change. We measure consumers' willingness to pay (WTP) for the elimination of...

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Bibliographic Details
Main Authors: Jutta Roosen, John A. Fox, David A. Hennessy, Alan Schreiber
Format: Article
Language:English
Published: Western Agricultural Economics Association 1998-12-01
Series:Journal of Agricultural and Resource Economics
Subjects:
consumer experiment
cosmetic quality
double-hurdle model
food safety
pesticide residues
vickrey auction
willingness to pay
Online Access:https://ageconsearch.umn.edu/record/31196
Description
Summary:Economic assessments of pesticide regulations typically focus on producer impacts and generally ignore possible changes in product demand. These changes may be nonnegligible if real and/or perceived product attributes change. We measure consumers' willingness to pay (WTP) for the elimination of one insecticide and also a whole group of insecticides in apple production using a multiple-round Vickrey auction. The data are analyzed using nonparametric statistical tests and a double-hurdle model. Our findings show that consumer perceptions of product attributes change if pesticides are removed from production, and this is reflected in WTP changes. WTP is shown to be income elastic.
ISSN:1068-5502
2327-8285

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