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Contingent Valuation in Food Policy Analysis: A Case Study of a Pesticide-Residue Risk Reduction

Published online by Cambridge University Press:  28 April 2015

Jean C. Buzby ,
Richard C. Ready  and
Jerry R. Skees
Jean C. Buzby
Affiliation:
Department of Agricultural Economics, University of Kentucky
Richard C. Ready
Affiliation:
Department of Agricultural Economics, University of Kentucky
Jerry R. Skees
Affiliation:
Department of Agricultural Economics, University of Kentucky
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Abstract

This study demonstrates how contingent valuation techniques can be used in a cost-benefit analysis of a food safety policy issue. The analysis focuses on banning a specific postharvest pesticide used in fresh grapefruit packinghouses. Benefits of the ban are measured using consumers' aggregated willingness to pay (WTP) for safer grapefruit. A national contingent valuation survey used the payment card method to obtain WTP data. Costs of the ban stem predominantly from increased postharvest losses and were estimated using a model of the market for Florida grapefruit. Results indicate that benefits of the ban outweigh costs.

Keywords

contingent valuationcost-benefit analysisfood safetypesticideswillingness to pay
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 2 , December 1995 , pp. 613 - 625
Copyright
Copyright © Southern Agricultural Economics Association 1995

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