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Willingness to pay for mortality risk reductions: Does latency matter?

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  • Anna Alberini
  • Maureen Cropper
  • Alan Krupnick
  • Nathalie Simon

Abstract

Using results from two contingent valuation surveys conducted in Canada and the U.S., we explore the effect of a latency period on willingness to pay (WTP) for reduced mortality risk using a structural model. We find that delaying the time at which the risk reduction occurs by 10 to 30 years reduces WTP by more than 60% for respondents in both samples aged 40 to 60 years. The implicit discount rates are equal to 3.0–8.6% for Canada and 1.3–5.6% for the U.S. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • Anna Alberini & Maureen Cropper & Alan Krupnick & Nathalie Simon, 2006. "Willingness to pay for mortality risk reductions: Does latency matter?," Journal of Risk and Uncertainty, Springer, vol. 32(3), pages 231-245, May.
  • Handle: RePEc:kap:jrisku:v:32:y:2006:i:3:p:231-245
    DOI: 10.1007/s11166-006-9521-0
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    More about this item

    Keywords

    Value of a statistical life; Mortality risks; Benefit-cost analysis;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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