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Demand for environmental policies to improve health: Evaluating community-level policy scenarios

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  • Bosworth, Ryan
  • Cameron, Trudy Ann
  • DeShazo, J.R.

Abstract

Using a national survey and a discrete choice experiment format, we estimate demand for environmental polices to improve health. We use a richly detailed community-level approach that describes illnesses avoided, premature deaths avoided, policy duration, and the affected population size. We allow preferences for policy attributes to vary systematically with the scenario design, with the source of risk and type of health threat, and with respondent characteristics. Using a willingness to pay (WTP) framework similar to that used for studies of individual risk, we find that omission of illness information leads to an upward bias in estimates of the value of avoided premature deaths and that individuals view avoided deaths and avoided illnesses as substitutes. We also find evidence of strongly diminishing marginal utility in policy scope. Differences in marginal WTP from different sources of risk or types of illness appear very small relative to differences associated with respondent characteristics and/or perceptions. Self-interest strongly dominates altruistic considerations.

Suggested Citation

  • Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2009. "Demand for environmental policies to improve health: Evaluating community-level policy scenarios," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 293-308, May.
  • Handle: RePEc:eee:jeeman:v:57:y:2009:i:3:p:293-308
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    References listed on IDEAS

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    Cited by:

    1. Marit Kragt & Jeffrey Bennett, 2012. "Attribute Framing in Choice Experiments: How Do Attribute Level Descriptions Affect Value Estimates?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 43-59, January.
    2. Gerking, Shelby & Dickie, Mark & Veronesi, Marcella, 2014. "Valuation of human health: An integrated model of willingness to pay for mortality and morbidity risk reductions," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 20-45.
    3. Cameron, Trudy Ann & DeShazo, J.R., 2013. "Demand for health risk reductions," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 87-109.
    4. Veronesi, Marcella & Reutemann, Tim & Zabel, Astrid & Engel, Stefanie, 2015. "Designing REDD+ schemes when forest users are not forest landowners: Evidence from a survey-based experiment in Kenya," Ecological Economics, Elsevier, vol. 116(C), pages 46-57.
    5. Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2015. "Willingness to pay for public health policies to treat illnesses," Journal of Health Economics, Elsevier, vol. 39(C), pages 74-88.
    6. Laura Taylor & Mark Morrison & Kevin Boyle, 2010. "Exchange Rules and the Incentive Compatibility of Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(2), pages 197-220, October.
    7. Curtis, Kynda & Slocum, Susan, 2016. "The Potential Impacts of Green Certification Programs Focused on Food Waste Reduction on the Tourism Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 0(Number 1), pages 1-6, March.
    8. Levan Elbakidze & Rodolfo M. Nayga Jr. & Hao Li & Chris McIntosh, 2014. "Value elicitation for multiple quantities of a quasi-public good using open ended choice experiments and uniform price auctions," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 253-265, March.
    9. Alberini, Anna & Ščasný, Milan, 2013. "Exploring heterogeneity in the value of a statistical life: Cause of death v. risk perceptions," Ecological Economics, Elsevier, vol. 94(C), pages 143-155.
    10. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    11. Adamowicz, Wiktor & Dupont, Diane & Krupnick, Alan & Zhang, Jing, 2011. "Valuation of cancer and microbial disease risk reductions in municipal drinking water: An analysis of risk context using multiple valuation methods," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 213-226, March.
    12. Barnes, Ryan N. & Bosworth, Ryan C. & Bailey, DeeVon & Curtis, Kynda R., 2014. "Connecting Sensory Quality Characteristics and Local Designations to Willingness to Pay for Cheese at the Retail Level," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 0(Issue 3), pages 1-24, September.
    13. 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.
    14. Morteza Chalak & Veronique Florec & Atakelty Hailu & Fiona Gibson & David Pannell, 2017. "Integrating non-market values in economic analyses of flood mitigation: a case study of the Brown Hill and Keswick creeks catchment in Adelaide," Working Papers 256513, University of Western Australia, School of Agricultural and Resource Economics.
    15. Attema, Arthur E. & Brouwer, Werner B.F. & l’Haridon, Olivier & Pinto, Jose Luis, 2015. "Estimating sign-dependent societal preferences for quality of life," Journal of Health Economics, Elsevier, vol. 43(C), pages 229-243.
    16. Veronesi, Marcella & Chawla, Fabienne & Maurer, Max & Lienert, Judit, 2014. "Climate change and the willingness to pay to reduce ecological and health risks from wastewater flooding in urban centers and the environment," Ecological Economics, Elsevier, vol. 98(C), pages 1-10.
    17. Hammitt, James K. & Haninger, Kevin, 2017. "Valuing nonfatal health risk as a function of illness severity and duration: Benefit transfer using QALYs," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 17-38.
    18. Konishi, Yoshifumi & Adachi, Kenji, 2011. "A framework for estimating willingness-to-pay to avoid endogenous environmental risks," Resource and Energy Economics, Elsevier, vol. 33(1), pages 130-154, January.

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