Determinants of agricultural chemical price in China's export-oriented vegetable production area
2010
Zhigang WANG | Shi ZHENG | H. Holly WANG | S. LIANG
Agricultural chemicals may have an adverse impact on environment and food safety. The demand prices of such chemicals reveal farmers' willingness to pay and their preferences. This article examines the determinants of the agricultural chemicals price in the export-oriented vegetable production area, Anqiu, Shandong Province, applying the Hedonic Price Model based on the spatial econometric technique to analyze the price. We find that the agricultural chemicals with a different shape and function have different equilibrium prices, and the chemical attributes of permeability, rainfastness, being a substitute of the highly poisonous chemical, having a zero residue, and the internal absorption can all influence the equilibrium prices remarkably. We also find that the prices of biological and non-pollution agricultural chemicals might not be higher than the ordinary agricultural chemicals with the same characteristics. These findings do not show a good sign to the new agricultural chemicals promotion and environmental protection, and should be brought to the government's attention.
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