Study On Adverse Selection Of Governence Of Fresh Vegetable Safety In China

Vegetable is daily necessity. Vegetable producers overuse or abuse the chemical pesticide and synthetic fertilizer in order to maximize their profit, which resulting in ubiquitous excessive pesticide residues in vegetable, and pesticide residues in vegetable did severe harm to people's health. Since 2001, Supervision and Management on vegetable Quality Security have been strengthened, but the current situation on excessive pesticide residues in vegetable is not yet optimistic.This dissertation is exactly launched under such background. The reasons why excessive pesticide residues in vegetable may appear are analyzed from the perspective of theory of Information Asymmetry and theory of game, and how the adverse selection forming and embodying and its evading in the vegetable market are analyzed too. This dissertation also want to make clear that the economic logics of excessive pesticide residues in vegetable. During the process, the author provide a great deal examples from field survey and systemically demonstrational analysis, combined with logical deducing, a clear demonstration is given on the current situation of pesticide residues in vegetable. At the last part of the dissertation, the author has found the key variables of vegetable residues question among the systematic engineering of the management on the Vegetable Quality Security, so that it is helpful to offer an effective and labour-saving key-point, theoretical basis for the establishment and enforcement of national policy.Based on the above-mentioned analyse, the economic theory on how to solve the question to excessive pesticide residues in vegetable was discussed. At the last some hypothesis on the typical Shaprio's quality reputation model was improved, and it is used to discuss the situations on the excessive pesticide residues in vegetable, and it is concluded that adverse selection in vegetable market should be evading mainly through reputation mechanism. Based on it, the qualitative analysis of case study was did, and some main factors affecting reputation of producer of vegetable were deduced. During the research, questionnaire investigation was applied. The quantitative analysis on the factors affecting the reputation of producer by mean of demonstration study was performed, as viewed from consumer, and the conclusion about the factors are: one is size of the production scale, the other is that vegetable was certificated or not.At the same time some other conclusions are educed:(1) Pesticide residues in vegetable is credence characteristic, and that causing the severe information asymmetry, and consequently, adverse selection was appeared, and at last resulting in market failure in the market of vegetable. The process is the essential reasons on ubiquitous excessive pesticide residues in vegetable.(2) Policy executors of the government has the attribute of "rational economic man" during supervision of vegetable safety. And the characteristics of "rational economic man" results that government only supervises the experience characteristics of vegetable, which resulting in failure of government interference on the market. All the analyzing results objectively reveal the logics for supervision of vegetable safety to government, and offer practical basis for amendment on the policy of vegetable quality safety.(3) Scattered, like-atomic production structure is the biggest obstacle for the controlling excessive pesticide residues in vegetable in China. It will be very difficult to governance vegetable safety without scale-production of vegetable. The conclusion is discovered based on a great deal and wide range field survey and theoretical deducing. The discovery can provide strong proof for structure adjustment in production and operations of vegetable by the government, at the same time, this conclusion offer some key proof on how to establish and enforce effective measures to improve vegetable safety.(4) In the factual economic society, consumer with bounded rationality still judge the safety of vegetable based on the reputation of retailer. The reputation mechanism still does work in credible market. In the factual economic society, a great deal and accurate first-hand data and second-hand data are proved that people are bounded rationality, which have been also proved by case study. And the final conclusion can provide a right direction for the long-term mechanism for the vegetable safety, that is, governance on the excessive pesticide residues in vegetable should be firstly focused on reputation mechanism.