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Valuation of cancer and microbial disease risk reductions in municipal drinking water: An analysis of risk context using multiple valuation methods

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  • Adamowicz, Wiktor
  • Dupont, Diane
  • Krupnick, Alan
  • Zhang, Jing

Abstract

We examine the value of health risk reductions (microbial illnesses/deaths and bladder cancer illnesses/deaths) in the context of drinking water quality treatment by public systems. When we assume that combined mortality and morbidity risk reductions are equally spread in the future; our results suggest that microbial risk-reduction programs have higher value than cancer risk-reduction programs, but that mortality risk reduction values are not significantly different for cancer and microbials. However, when a 25-year cancer latency is accounted for and a 5% discount rate is used, the value of cancer mortality risk reductions exceeds the value for microbial risk reductions. We also address a number of methodological issues, including performance of alternative choice experiment estimation (CE) techniques, relationship of CE to contingent valuation results, and implications for incorporating morbidity and mortality endpoints in the same survey instrument.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jeeman:v:61:y:2011:i:2:p:213-226
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    References listed on IDEAS

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    Cited by:

    1. Andersson, Henrik & Hole, Arne Risa & Svensson, Mikael, 2016. "Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 41-53.
    2. Kawata, Yukichika & Watanabe, Masahide, 2012. "Valuing the mortality risk of wildlife reintroduction: Heterogeneous risk preferences," Ecological Economics, Elsevier, vol. 76(C), pages 79-86.
    3. Rebecca L. McDonald & Susan M. Chilton & Michael W. Jones-Lee & Hugh R. T. Metcalf, 2016. "Dread and latency impacts on a VSL for cancer risk reductions," Journal of Risk and Uncertainty, Springer, vol. 52(2), pages 137-161, April.
    4. Olivier Beaumais & Anne Briand & Katrin Millock & Céline Nauges, 2010. "What are Households Willing to Pay for Better Tap Water Quality ? A Cross-Country Valuation Study," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00497453, HAL.
    5. Glenk, Klaus & Hall, Clare & Liebe, Ulf & Meyerhoff, Jürgen, 2012. "Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley," Food Policy, Elsevier, vol. 37(6), pages 719-731.
    6. Alberini, Anna & Ščasný, Milan, 2017. "The Benefits of Avoiding Cancer (or Dying from Cancer): Evidence from a Four-country Study," SAS: Society and Sustainability 253214, Fondazione Eni Enrico Mattei (FEEM).
    7. Gunnar Gutsche & Andreas Ziegler, 2016. "Are private investors willing to pay for sustainable investments? A stated choice experiment," MAGKS Papers on Economics 201640, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. repec:kap:enreec:v:68:y:2017:i:3:d:10.1007_s10640-016-0039-x is not listed on IDEAS
    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. Anna Alberini, 2017. "Measuring the economic value of the effects of chemicals on ecological systems and human health," OECD Environment Working Papers 116, OECD Publishing.
    11. Hammitt, James & Roman, Henry & Stieb, David & Walsh, Tyra, 2012. "Expert Elicitation of the Value per Statistical Life in an Air Pollution Context," LERNA Working Papers 12.10.367, LERNA, University of Toulouse.
    12. Chalak, Morteza & Burton, Michael, 2016. "Willingness to pay to reduce health costs associated with bushfire smoke," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235364, Agricultural and Applied Economics Association.
    13. Schwirplies, Claudia & Dütschke, Elisabeth & Schleich, Joachim & Ziegler, Andreas, 2017. "Consumers' willingness to offset their CO2 emissions from traveling: A discrete choice analysis of framing and provider contributions," Working Papers "Sustainability and Innovation" S05/2017, Fraunhofer Institute for Systems and Innovation Research (ISI).
    14. Maureen Cropper & James K. Hammitt & Lisa A. Robinson, 2011. "Valuing Mortality Risk Reductions: Progress and Challenges," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 313-336, October.
    15. Dennis Guignet & Anna Alberini, 2013. "Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the UK," Working Papers 2013.67, Fondazione Eni Enrico Mattei.
    16. Azevedo, C.D. & Crooker, J.R. & Pattiz, B., 2012. "Bid Imprecision As A Source Of Hypothetical Bias In Contingent Valuation Estimation: Analysis Of A Survey Of Respondent’S Attitudes For The Battle Of Lexington State Historic Site (Shs)," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(2).
    17. 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.
    18. McDonald, R.L. & Chilton, S.M. & Jones-Lee, M.W. & Metcalf, H.R.T., 2017. "Evidence of variable discount rates and non-standard discounting in mortality risk valuation," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 152-167.
    19. Thiene, Mara & Meyerhoff, Jürgen & De Salvo, Maria, 2012. "Scale and taste heterogeneity for forest biodiversity: Models of serial nonparticipation and their effects," Journal of Forest Economics, Elsevier, vol. 18(4), pages 355-369.
    20. Weng, Weizhe & Morrison, Mark & Boyle, Kevin & Boxall, Peter, 2017. "The effect of the number of alternatives in a choice experiment with an application to the Macquarie Marshes, AU," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252836, Southern Agricultural Economics Association.
    21. Oehlmann, Malte & Meyerhoff, Jürgen & Mariel, Petr & Weller, Priska, 2017. "Uncovering context-induced status quo effects in choice experiments," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 59-73.
    22. Dan Marsh & Lena Mkwara & Riccardo Scarpa, 2011. "Do Respondents’ Perceptions of the Status Quo Matter in Non-Market Valuation with Choice Experiments? An Application to New Zealand Freshwater Streams," Sustainability, MDPI, Open Access Journal, vol. 3(9), pages 1-23, September.
    23. Emily Lancsar & Peter Burge, 2014. "Choice modelling research in health economics," Chapters,in: Handbook of Choice Modelling, chapter 28, pages 675-687 Edward Elgar Publishing.
    24. Kountouris, Yiannis & Nakic, Zoran & Sauer, Johannes, 2015. "Political instability and non-market valuation: Evidence from Croatia," Resource and Energy Economics, Elsevier, vol. 41(C), pages 19-39.
    25. Pierre-Alexandre Mahieu & Henrik Andersson & Olivier Beaumais & Romain Crastes & François-Charles Wolff, 2014. "Is Choice Experiment Becoming more Popular than Contingent Valuation? A Systematic Review in Agriculture, Environment and Health," Working Papers 2014.12, FAERE - French Association of Environmental and Resource Economists.

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