Environmental Economics

Estimating Consumer Willingness to Pay to Reduce Food-Borne Risk

This report analyzes consumer willingness to pay to reduce food-borne risks, focusing on consumer choice between organically and conventionally grown produce. It uses two alternative methodologies: a revealed preference analysis of actual market choices, and an exploratory contingent valuation survey administered to focus-group participants. Overall, the study confirms the possibility of deriving reasonable estimates of the additional value consumers place on organically grown produce. However, the extremely uncertain estimates of the risk avoided by choosing organically grown foods limits the ability to reliably estimate consumer willingness to pay for actual risk reduction.

  • Keywords

    Subject:
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Revealed Preference
    1. Benefits Analysis - Valuation - Revealed Preference - Consumption Choices
    Environmental Media:
    d. Chemicals
    d. Chemicals - Pesticides
    Authors:
    Hammitt, James K.
    EPA Project Officer/ Manager:
    Luken, Ralph
    Geographic Area:
    Study Purpose:
    Empirical Application
    Inventory Record #: PE-0004
  • Participating Organizations

    Research Organization:

    RAND CorporationAddress:
    City: Santa Monica State: CA ZIP:
    Phone: Fax:
    E-mail:

    Non-EPA Publishing Organization:
    RAND CorporationAddress: Distribution Services, RAND
    P.O. Box 2138

    City: Santa Monica State: CA ZIP: 90407-2138
    Phone: (310) 451-7002 Fax: (310) 451-6915
    E-mail: order@rand.org
  • Report Details
    Type:
    Final
    Date:
    10/01/1986
    Number of Pages:
    104
    Comment: RAND Corporation report #: R-3447-EPA
  • How to Obtain Report

    Not available from EERM
    Other Ways to Obtain the Report:
    You can obtain this report by contacting RAND Corporation directly at:
    Distribution Services, RAND
    P.O. Box 2138
    , Santa Monica, CA 90407-2138
    or go to the following WEB address:
    http://www.rand.org/cgi-bin/Abstracts/e-mkorder.pl?+10.00,,,R-3447-EPA,,,+Estimating+Consumer+Willingness+to+Pay+to+Reduce+Food-Borne+Risk