Willingness-to-Pay for Oyster Consumption Mortality Risk Reductions
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In this paper we use data from an internet-based survey and estimate the benefits of an oyster consumption safety policy with the contingent valuation method. In addition to providing a context specific estimate of willingness-to-pay for oyster safety, we consider two unresolved issues in the contingent valuation health risk literature. First, a number of studies in the mortality risk reduction literature find that willingness-to-pay is not sensitive to the scope of the risk change. We present the scope test as a difference in the number of lives saved by the program, instead of small changes in risk, and that referendum votes are responsive to scope. Second, we identify those at risk respondents who would actually benefit from the policy and decompose willingness-to-pay into personal mortality risk reduction values and altruistic willingness-to-pay. We find that respondents are sensitive to the scope of the policy and most at-risk respondents are willing to pay even more. We find that willingness-to-pay per life saved is $1.28 million for the pure private good of own-risk reduction. Willingness-to-per per life saved including private values and public, altruistic nonuse values is $5.92 million. Altruistic values are the major component of willingness-to-pay. Key Words: contingent valuation, scope test, altruism, seafood safety, health risk, oysterKeywords:
Contingent valuation
Private good
Scope (computer science)
Consumption
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Using a contingent valuation survey, people’s willingness to pay for a given risk reduction is found to be much larger when traveling by air compared to by taxi. Follow-up questions revealed that an important reason for this discrepancy is that many experience a higher mental suffering from flying, and that they are willing to pay to reduce this suffering. It was also consistently found that people are willing to pay more for a certain risk reduction if the original price was higher. Policy implications are discussed.
Contingent valuation
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Contingent valuation
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Scope (computer science)
Willingness to accept
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Contingent valuation
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Pooling
Converse
Willingness to accept
Household income
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Determining the health insurance premium is the most important aspect in providing social health insurance. In measuring the rate, it is needed to calculate the cost of providing the service. One possible methodological tool of calculating the cost is the contingent valuation method for the evaluation of the consumers’ capacity and their willingness to pay for the services. This study applied a Logit model, having binary depended variable with follow up dichotomous choice at different premium levels, to estimate the factors associated to joining the social health insurance scheme. The study found that 80.1 percent of the government employees of Bangladesh wants to pay on average 6.69 percent of their basic salary as social health insurance premium. The result shows that younger peoples are less willing to pay while older people are more willing to pay for social health insurance. The study also revealed that the area of residence and no of visit to doctor play a key role in determining the willingness to pay. This study should help the policymakers to formulate and implement the social health insurance scheme in Bangladesh.
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Contingent valuation
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Citizen evaluation of municipal services is an important development in urban policymaking.' In this paper we use a measure of willingness to pay per capita costs to determine citizen preferences. Specifically we test (1) whether people are less willing to support government programs when they are asked to pay the per capita share of the cost, (2) whether the relative ordering of different programs changes when willingness to pay is asked, and (3) whether such questions affect the assessment of some kinds of people differently from others.
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Abstract Cost–Benefit Analysis (CBA) is a technique of economic evaluation, where the benefits of programs are valued in monetary terms to permit direct comparison with program costs. There are a number of measurement and statistical challenges that arise while attempting to assign money values to health program benefits such as reduction in the risks of morbidity and mortality. The basic measurement goal is to quantify the trade‐offs that consumers are willing to make between reduced health risk and money. Specifically, to identify the maximum willingness to pay (WTP) for health benefits. In this chapter, we review several approaches to both market‐based “revealed preference” and survey‐based “stated preference” WTP estimation. A prevalent method developed in environmental economics is to ask respondents to accept/reject questions for increasingly higher monetary amounts (“bids”) and then to use survival‐type methods to estimate a bid curve, with covariates, that can be used to solve mean or median WTP.
Revealed preference
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Contingent valuation
Preference Elicitation
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Our research clarifies the conceptual linkages among willingness to pay for additional safety, willingness to accept less safety, and the value of statistical life (VSL). We present econometric estimates that in the important case of workers' decisions concerning exposure to fatal injury risk there is no statistically significant divergence between willingness to accept and willingness to pay. Our focal result contrasts with the literature documenting a considerable asymmetry in tradeoff rates for increases and decreases in risk. An important implication for policy is that it is reasonable to use labor market estimates of VSL as a measure of the willingness to pay for additional safety.
Willingness to accept
Value (mathematics)
Divergence (linguistics)
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Sensitivity (proportionality) of willingness to pay to (small) risk changes is often used as a criterion to test for valid measures of economic preferences. In a contingent valuation (CV) study conducted in Austria in February 2005 1,005 respondents were asked their willingness to pay (WTP) for preventing an increase in risk by 1/42,500 and 3/42,500, respectively. WTP for the higher risk variation is significantly higher than WTP for the lower risk change. We find evidence that those respondents who have personal experience with avalanches combine the information about future risk increase, provided in the survey, with the observed number of mortal avalanche accidents in the past. The proportionality of WTP holds if such prior experiences are taken into account and the influence of attitudinal factors in scope tests are controlled for.
Contingent valuation
Proportionality
Scope (computer science)
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Efficient allocation of public funds depends upon good information about citizens' values. The purpose of this paper is to demonstrate how citizens' values can be obtained by eliciting marginal willingness to tradeoff (MWTTO) ratios for public spending categories and linking these ratios to individual, private willingness to pay. The link enables estimation of the willingness to pay for an expansion to any of the budget categories based on the elicited willingness to pay and the marginal willingness to tradeoff ratios. Tradeoff ratios and willingness to pay are estimated for public budget categories in Kentucky based on a representative sample surveyed by mail and the web in 2007. Estimates show that individuals are willing to pay the most for an expansion to educational services, followed by health care.
Willingness to accept
Sample (material)
Marginal utility
Budget constraint
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