Abstract
The paper investigates the Turkish consumers' willingness to pay for a label which guarantees that pesticide residues in tomatoes do not cause health problems. Tomatoes are a widely purchased food item in urban Turkey. By focusing on tomato purchases and pesticide residues only, we were able to investigate realistic consumer choices related to safety labels across a diverse set of consumers. Modified market method was used to estimate the willingness to pay for a label. To elicit tomato purchasing behaviour under alternative prices and residue scenarios, a survey was conducted with 1,005 randomly selected urban households. A tobit model was used to estimate the demand shift due to the presence of a label. To determine the variables that affect the probability of purchasing the labelled food, a probit model was estimated. The results indicate that the willingness to pay for a label is determined by the individual's perceived health risk reduction due to purchasing labelled produce.
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