A report on the efficient way to take into account the consumer WTP in order to improve the European regulation of pesticides for fresh and processed agricultural products

Summary

From some work on experimental economy carried out in several European countries (Portugal, France, Greece and the Netherlands), we assess the willingness to pay (WTP) of consumers for various levels of environmental certification of food products (particularly organic farming and Integrated Pest Management production strategies). With the help of this assessment we are able to define a multi-criterion procedure for the public authorities with the aim of securing the participation of consumers in a collective effort to reduce pesticides in agriculture. We show how European consumers may have relatively uniform expectations vis-à-vis the reduction of pesticides in the fruit and vegetable sector. When this reduction is publicly certified, consumers’ willingness to pay increases as a function of the level of reduction. Organic farming is clearly approved in all the countries and very often enables a doubling of the consumers’ WTP. On the other hand, partial reduction via public or private Integrated Pest Management is, other things being equal, only accorded low value. As part of a multi-criterion approach to public policies, we show how the simultaneous use of several regulatory instruments (information, taxation, subsidy) favours responsible environmental behaviour on the part of consumers.