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Public preferences and valuation of new malaria risk

Author

Listed:
  • Mehmet Kutluay

    (Institute for Environmental Studies, Vrije Universiteit, Amsterdam
    Tinbergen Institute, Amsterdam/Rotterdam)

  • Roy Brouwer

    (Department of Economics, University of Waterloo, Canada
    Institute for Environmental Studies, Vrije Universiteit, Amsterdam)

  • Haripriya Gundimeda

    (Department of Economics, IIT Bombay, Mumbai)

  • Nitin Lokhande

    (Department of Economics, IIT Bombay, Mumbai)

  • Richard S. J. Tol

    (Department of Economics, University of Sussex
    Institute for Environmental Studies, Vrije Universiteit, Amsterdam
    Department of Spatial Economics, Vrije Universiteit, Amsterdam
    Tinbergen Institute, Amsterdam)

Abstract

After years of decline, malaria prevalence may increase in the future due to climate change, and spread to areas that have not experienced the disease before. Any policy that aims to mitigate or adapt to this scenario needs to take into account the economic benefits of avoided malaria (willingness to pay - WTP). Much work has been done on WTP, but not much is known about how WTP changes with the probability of becoming ill. To this end a survey is carried out in Mumbai, India, to compare respondents' WTP to avoid malaria across risky and less-risky areas. We find WTP to be 10% higher in risky areas than in less-risky areas. We also observe WTP to increase by more than 15% between malaria-experienced and naïve respondents, indicating a familiarity premium. These findings indicate higher welfare returns to climate change mitigation policies than previously thought.

Suggested Citation

  • Mehmet Kutluay & Roy Brouwer & Haripriya Gundimeda & Nitin Lokhande & Richard S. J. Tol, 2017. "Public preferences and valuation of new malaria risk," Working Paper Series 1917, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:1917
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    File URL: http://www.sussex.ac.uk/economics/documents/wps-19-2017.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    malaria; willingness to pay; discrete choice experiment;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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