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Pesticide Risk Valuation in Empirical Economics

Author

Listed:
  • Peter Nijkamp

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Chiara Maria Travisi

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Gabriella Vindigni

    (University of Catania, Italy)

Abstract
Pesticide use in agriculture poses several risks to both human health and non-target agro-ecosystems. Due to lack of information on the monetary value of reducing pesticide risks, it is difficult to perform an economic analysis that addresses social efficiency of policy and draws conclusions about the appropriate degree of regulation.The aim of the current paper is to present a critical overview of the empirical literature on pesticide risk valuation that provides disaggregate willingness-to-pay estimates (WTPs) of pesticide risks reduction. Recent multidimensional classification methods, such as coined decision tree analysis, are used in a comparative approach as tools for explaining the differences in empirical research findings. The analysis shows that the magnitude of WTPs is related to both the valuation technique and to the data available from biomedical and eco-toxicological literature. It also shows that WTP estimates of pesticide risks cannot be simply averaged over several empirical studies. The order of magnitude of a WTP estimate is, in fact, related to the specific type of risk and to the nature of the risk scenario considered, as well to lay people's subjective perception of risks.

Suggested Citation

  • Peter Nijkamp & Chiara Maria Travisi & Gabriella Vindigni, 2002. "Pesticide Risk Valuation in Empirical Economics," Tinbergen Institute Discussion Papers 02-112/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020112
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    File URL: https://papers.tinbergen.nl/02112.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    pesticide environmental and health risks; willingness-to-pay; comparative analysis.;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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