Economic Analysis of Environemental Benefits of Integrated Pest Management (Case Study, Khuzestan Province Farms)

Environmental effects associated with pesticide application have motivated the development of integrated pest management programs throughout the world. Advantages of the implementation of such a program like food security, biodiversity, consumer and producer security can be stated as economic value. Estimating the economic value of such programs can be helpful in identifying the benefits as well as their extensive applications. This study employs contingent Valuation survey to estimate farmers’ willingness to reduce three risk levels (high, moderate, low) in five environmental categories (human health, birds, aquatic species, beneficial insects and livestock). Using the environmental/risk criteria, pesticide active ingredients are divided by the environmental classes in conditions of application and non-application of Integrated Pest Management (IPM). To estimate the economic benefits, the physical risk assessment approach was combined with the contingent valuation survey results. Data were collected from 180 Farmers in Khuzestan province in 2009 using two step Random Sampling Method. IPM practices reduced the Agrochemicals’ hazards in all the environmental classes. The values of change in the environmental risks varied from 5 percent (human/low) to 57 percent (livestock/high). The economical benefits for 15 environmental classes varied from 315364 Rials (human/high) to 9596 Rials (human/low) per capita in a cropping season. The aggregate value of environmental benefits of IPM in Khuzestan within 2009 is estimated as 1140740 Rials per household. Relevant education in the context of awareness of farmers as well as adoption of standards along with relevant regulations for a limitation of toxic substances’ usage are recommended.