Course:ECON371/UBCO2009WT1/Group 7/Article1

analysis/comments

working notes...

if this is the case price discrepancy likely represents inefficiency at a microeconomic level. lost resources. maybe not the case, weak science.

is there a value in simply the "ideology" of organics? the socially left wing like being able to say they eat organic, does this have value to them? does this explain the price discrep.

more importantly (at least to the class), value of pesticide free food EXCLUDING the value of nutrition. organics have value in the environment in a broader social welfare function.

"Also, there is not sufficient research on the long-term effects of pesticides on human health," he added. lack of information. is this risk or uncertainty. how do models of information disequilibria fit in to this, economically?

Prof's Comments

Clearly incomplete. Taking the results at face value, the issues are what is organic worth if not for the nutritional value. I like the comment about it as a status purchase. Also, the environmental benefit on the farm is generally accepted as positive, as you have noted.