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Willingness to Pay for Mortality Risk Reductions: Does Latency Matter?

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  • Alberini, Anna
  • Cropper, Maureen L.
  • Krupnick, Alan J.
  • Simon, Nathalie B.

Abstract

Using results from two contingent valuation surveys conducted in Canada and the United States, we explore the effect of a latency period on willingness to pay (WTP) for reduced mortality risk using both structural and reduced form approaches. We find that delaying the time at which the risk reduction occurs by 10 to 30 years significantly reduces WTP for respondents aged 40 to 60 years. Additionally, we estimate implicit discount rates equal to 8% for Canada and 4.5% for the United States-both well within the range established previously in the literature.

Suggested Citation

  • Alberini, Anna & Cropper, Maureen L. & Krupnick, Alan J. & Simon, Nathalie B., 2004. "Willingness to Pay for Mortality Risk Reductions: Does Latency Matter?," Discussion Papers 10500, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10500
    DOI: 10.22004/ag.econ.10500
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    More about this item

    Keywords

    Health Economics and Policy;

    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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