CONTINGENT VALUATION IN FOOD POLICY ANALYSIS: A CASE STUDY OF A PESTICIDE-RESIDUE RISK REDUCTION

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 post harvest 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 post harvest losses and were estimated using a model of the market for Florida grapefruit. Results indicate that benefits of the ban outweigh costs.