Pesticide Residue Risk and Food Safety Valuation: A Random Utility Approach

Abstract

A new approach is developed for integrating consumers' risk perceptions with stated purchase behavior when consumption decisions must be made with incomplete information. The application involves health risks from exposure to pesticide residues on fresh produce. Unlike traditional food demand analysis, the present approach treats produce choices as discrete outcomes, resulting in a random utility model. Empirical results from a pilot survey suggest a clear linkage between perceptions and behavior in response to new risk information. Consumers' stated preferences for safer produce were primarily influenced by price differences and perceived risks, not by the technical risk information provided alone. However, the linkage between behavior and valuation was less clear cut. The risk/price tradeoffs entailed by contingent discrete choices indicate high price premia for small risk reductions and little variation in price premium across alternative risk reductions.

How Many Bad Apples are in a Bunch? An Experimental Investigation of Perceived Pesticide Residue Risks

“…In general, these studies have shown a negative correlation between people's perceptions of health outcomes due to pesticide residues and willingness to purchase products which contain those chemical substances. Many food products have been considered, ranging from general unlabeled ones (e.g., Misra, et al, 1991;Eom, 1994;Rimal, et al 2008) to specific types of fresh fruit and vegetables (e.g., Fu et al, 1999;Boccaletti and Nardella, 2000).…”

“…high, medium, or low), likert or other numerical scales. Eom (1994) has elicited subjects' concern about the presence of pesticides in general commercially grown food products by using a likert scale between 0 (no risk) and 10 (very serious risk). This study has found that the average concern across consumers was quite high, around 6.6.…”

Deltamethrin residues applied in different formulations in staked cucumber and the actions of insecticides on the pickleworm control

“…Although pesticides are used to control pests, diseases, and weeds, they may contaminate foods, other products, and the environment due to their application at a given stage of the crop's production cycle, storage, transport, or due to soil contamination from previous treatments, crop rotation, or to irrigation water contamination (Eom, 1994).…”

A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure

“…Most studies refer to the US, given the importance of food safety policy there (see, e.g. Misra et al, 1991;Ravenswaay and Hoehn, 1991a,b;Baker and Crosbie, 1993;Eom, 1994;Buzby et al, 1995;Roosen et al, 1998). Occasionally, the valuation concerns a cost-benefit analysis of the reduction or ban of a specific pesticide compound (Bubzy et al, 1995;Roosen et al, 1998).…”

“…Alternatively, the valuation is more marketing-oriented and focuses on consumers' WTP for certified residues-free produce or fresh products certified for integrated pest management (see, e.g. Misra et al, 1991;Ravenswaay and Hoehn, 1991a;Ott, 1990;Baker and Crosbie, 1993;Eom, 1994;Blend and Ravenswaay, 1999).…”