Estimating the demand curve for sustainable use of pesticides from contingent-valuation data

Cristina Amaro da Costa and José Lima Santos

Ecological Economics, 2016, vol. 127, issue C, 121-128

Abstract: Stated-preference valuation techniques are often used to assess consumers' willingness-to-pay for food items produced in farming systems that adopt a sustainable use of pesticides (SUP). We propose an innovative valuation methodology in which dichotomous-choice contingent valuation is used to estimate the demand curve (price-quantity relationship) for such food items where price means price premium for the SUP output, quantity is the probability of choosing SUP and the conventional food product is kept available in the market at the current market price. This methodology can be used to evaluate market differentiation as a policy option to promote the SUP.

Keywords: Contingent valuation; Pesticides; Integrated pest management; Differentiated markets; Policy options (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:127:y:2016:i:c:p:121-128

DOI: 10.1016/j.ecolecon.2016.04.019

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