Volume No. 7 Issue No.: 4A Page No.: 1684-1692 April-June 2013

 

AN ECONOMIC ANALYSIS OF CONSUMER PREFERENCE TOWARDS PEST MANAGEMENT (IPM) PRODUCE

 

Kiruthika N.*1 and Selvaraj K.N.2

1. Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore
(INDIA)
2. Department of Trade and Intellectual Property, Tamil Nadu Agricultural University,
Coimbatore (INDIA)

 

Received on : December 05, 2012

 

ABSTRACT

 

The study was conducted to evaluate empirically the demographic characteristics which cause consumers to be more likely to purchase IPM grown produce. The public concern about the adverse effects of chemical pesticides on the environment and health have been the principal triggers of the development of IPM. This paper evaluated the consumer preference for IPM produce that can help advising on policy issues related to implementing IPM programmes. Following the Lancaster consumer’s demand theory we assume that consumer’s utility depends on product characteristics instead of the product itself. Consumer’s choice for IPM grown produce was analyzed within the random utility discrete choice model and a logit model was specified. The data were collected through a questionnaire conducted in the western region of Tamil Nadu in 2011. A hypothetical willingness-to-purchase as well as willing-to-pay models for IPM produce were presented. Income and education were found to be the most significant determinants of willingness-to-purchase IPM grown produce. The results also indicated that younger individuals, those who frequently purchase organic produce, those who visit farmers market, those who know the riskiness of the pesticide and those who live in urban areas were all found to be more likely to pay a premium for IPM grown produce. Respondents also ranked pesticide residues as their top food safety concern relative to five other common sources of food risk. Overall, the results of this survey give insight into the likely consumer response to produce that is labeled as “IPM Grown”. It also indicates that the consumer know their role in the contribution of ecological sustainability through conserving natural resource bases.

 

Keywords : Integrated pest management, Environment, Logit, Consumer preference, Pesticide residues

 

 

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