CONSUMERS' VALUATION OF INSECTICIDE USE RESTRICTIONS: AN APPLICATION TO APPLES

Jutta Roosen

142 citations0/0 files storedRePEc: Research Papers in Economics

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Economic and Environmental Valuation Economics of Agriculture and Food Markets Agricultural Economics and Policy

Abstract

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.

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1971Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods 1994Resolving Differences in Willingness to Pay and Willingness to Accept: Reply 1991CONSUMER WILLINGNESS TO PAY FOR PESTICIDE-FREE FRESH PRODUCE 1996Consumer Preferences for Fresh Food Items with Multiple Quality Attributes: Evidence from an Experimental Auction of Pork Chops

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