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Scope insensitivity in health risk reduction studies: A comparison of choice experiments and the contingent valuation method for valuing safer food

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  • Isabell Goldberg
  • Jutta Roosen

    ()

Abstract

Scope insensitivity and embedding are fundamental concerns in contingent valuation studies for health risk reductions. Recently, choice experiments have increasingly been used to obtain contingent willingness to pay (WTP) estimates. We juxtapose the WTP estimates of a choice experiment (CE) to those of the contingent valuation method (CVM) for different health risk reductions and compare them in the extent of scope insensitivity and embedding. WTP using CVM is scope sensitive for single health risks, but embedding is observed for multiple disease risks. In contrast, WTP based on the CE is highly scope sensitive and convex in risk reduction levels. Copyright Springer Science+Business Media, LLC 2007

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Bibliographic Info

Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 34 (2007)
Issue (Month): 2 (April)
Pages: 123-144

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Handle: RePEc:kap:jrisku:v:34:y:2007:i:2:p:123-144

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Web page: http://www.springerlink.com/link.asp?id=100299

Related research

Keywords: Choice experiments; Contingent valuation method; Embedding effect; Food safety; Scope insensitivity; Willingness to pay; C9; D8; D12;

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Citations

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Cited by:
  1. Breustedt, Gunnar, 2014. "Demand for carbon-neutral food – evidence from a Discrete Choice Experiment for milk and apple juice," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169748, Agricultural Economics Society.
  2. Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Working Papers in Economics 591, University of Gothenburg, Department of Economics.
  3. Phumsith Mahasuweerachai, 2013. "Do Parents Benefit from School Health Risk Reduction?," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 20(2), pages 75-95, December.
  4. John C. Whitehead & O. Ashton Morgan & William L. Huth & Gregory S. Martin & Richard Sjolander, 2012. "Willingness-to-Pay for Oyster Consumption Mortality Risk Reductions," Working Papers 12-07, Department of Economics, Appalachian State University.
  5. Marielle Brunette, 2012. "Do risk communication methods perform to generate rationality?," Working Papers - Cahiers du LEF 2012-01, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
  6. Sund, Björn, 2009. "Sensitivity to scope in contingent valuation – introducing a flexible community analogy to communicate mortality risk reductions," Working Papers 2009:2, Örebro University, School of Business.
  7. Sund, Björn, 2009. "Certainty calibration in contingent valuation - exploring the within-difference between dichotomous choice and open-ended answers as a certainty measure," Working Papers 2009:1, Örebro University, School of Business.
  8. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
  9. Travisi, Chiara Maria & Nijkamp, Peter, 2008. "Valuing environmental and health risk in agriculture: A choice experiment approach to pesticides in Italy," Ecological Economics, Elsevier, vol. 67(4), pages 598-607, November.
  10. Morten Mørkbak & Jonas Nordström, 2009. "The Impact of Information on Consumer Preferences for Different Animal Food Production Methods," Journal of Consumer Policy, Springer, vol. 32(4), pages 313-331, December.
  11. Birol, Ekin & Roy, Devesh & Torero, Maximo, 2010. "How safe is my food?: Assessing the effect of information and credible certification on consumer demand for food safety in developing countries," IFPRI discussion papers 1029, International Food Policy Research Institute (IFPRI).
  12. Sckokai, Paolo & Veneziani, Mario & Moro, Daniele & Castellari, Elena, 2014. "Consumer willingness to pay for food safety: the case of mycotoxins in milk," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.
  13. Yao, Richard T. & Scarpa, Riccardo & Turner, James A. & Barnard, Tim D. & Rose, John M. & Palma, João H.N. & Harrison, Duncan R., 2014. "Valuing biodiversity enhancement in New Zealand's planted forests: Socioeconomic and spatial determinants of willingness-to-pay," Ecological Economics, Elsevier, vol. 98(C), pages 90-101.
  14. Wei-Chun Tseng & Chi-Chung Chen & Ching-Cheng Chang & Yu-Hsien Chu, 2009. "Estimating the economic impacts of climate change on infectious diseases: a case study on dengue fever in Taiwan," Climatic Change, Springer, vol. 92(1), pages 123-140, January.
  15. Teisl, Mario F. & Roe, Brian E., 2010. "Consumer willingness-to-pay to reduce the probability of retail foodborne pathogen contamination," Food Policy, Elsevier, vol. 35(6), pages 521-530, December.
  16. Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Discussion Papers dp-14-11-efd, Resources For the Future.

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