The Welfare Effects of Pfiesteria-Related Fish Kills: A Contingent Behavior Analysis of Seafood Consumers Report as inadecuate




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We use contingent behavior analysis to study the effects of pfiesteria-related fish kills on the demand for seafood in the Mid-Atlantic region. We estimate a set of demand difference models based on individual responses to questions about seafood consumption in the presence of fish kills and with different amounts of information provided about health risks. We use a random-effects Tobit model to control for correlation across each observation and to account for censoring. We find that (i) pfiesteria-related fish kills have a significant negative effect on the demand for seafood even though the fish kills pose no known threat to consumers through sea-food consumption, (ii) seafood consumers are not responsive to expert risk information designed to reassure them that seafood is safe in the presence of a fish kill, and (iii) a mandatory seafood inspection program largely eliminates the welfare loss incurred due to misinformation.

Keywords: pfiesteria ; seafood demand ; non-market valuation

Subject(s): Resource /Energy Economics and Policy

Issue Date: 2006-10

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/10205 Published in: Agricultural and Resource Economics Review, Volume 35, Number 2 Page range: 348-356

Total Pages: 9

Record appears in: Northeastern Agricultural and Resource Economics Association (NAREA) > Agricultural and Resource Economics Review





Author: Parsons, George R. ; Morgan, Ash ; Whitehead, John C. ; Haab, Timothy C.

Source: http://ageconsearch.umn.edu/record/10205?ln=en



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