The Value Of Risk - Free Cigarettes - Do Smokers Underestimate The Risk?
The health risk of smoking is valued using the contingent valuation method, applied to a Swedish sample of smokers. The respondents were asked to put a value on newly developed cigarettes with no associated health risks. The average additional willingness to pay for the new cigarettes is estimated to be between10 and 41 SEK per packet. Using medical data on life shortening effects of smoking, the results indicate fairly reasonable values put on a lost life year, compared to existing estimates based on other methods. However, there are remaining methodological questions and we found little sensitivity to scope.
|Date of creation:||30 Nov 2001|
|Date of revision:|
|Publication status:||Published in Health Economics, 2004, pages 59-71.|
|Contact details of provider:|| Postal: |
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Viscusi, W Kip, 1990. "Do Smokers Underestimate Risks?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1253-69, December.
- Jonathan Gruber & Botond Köszegi, 2001. "Is Addiction "Rational"? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1261-1303, November.
- W. Kip Viscusi & Joni Hersch, 2001. "Cigarette Smokers As Job Risk Takers," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 269-280, May.
- Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
- Corso, Phaedra S & Hammitt, James K & Graham, John D, 2001. " Valuing Mortality-Risk Reduction: Using Visual Aids to Improve the Validity of Contingent Valuation," Journal of Risk and Uncertainty, Springer, vol. 23(2), pages 165-84, September.
- Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
- David M. Cutler & Jonathan Gruber & Raymond S. Hartman & M.B. Landrum, J. Newhouse & Meredith B. Rosenthal, 2000.
"The Economic Impacts of the Tobacco Settlement,"
NBER Working Papers
7760, National Bureau of Economic Research, Inc.
- Bente Halvorsen & Kjartan Sœlensminde, 1998. "Differences between Willingness-to-Pay Estimates from Open-Ended and Discrete-Choice Contingent Valuation Methods: The Effects of Heteroscedasticity," Land Economics, University of Wisconsin Press, vol. 74(2), pages 262-282.
- Johannesson, Magnus & Johansson, Per-Olov, 1997. "Is the valuation of a QALY gained independent of age? Some empirical evidence," Journal of Health Economics, Elsevier, vol. 16(5), pages 589-599, October.
- Kevin J. Boyle & Hugh F. MacDonald & Hsiang-tai Cheng & Daniel W. McCollum, 1998. "Bid Design and Yea Saying in Single-Bounded, Dichotomous-Choice Questions," Land Economics, University of Wisconsin Press, vol. 74(1), pages 49-64.
- Ann Fisher & Lauraine G. Chestnut & Daniel M. Violette, 1989. "The value of reducing risks of death: A note on new evidence," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 8(1), pages 88-100.
- Ippolito, Pauline M. & Ippolito, Richard A., 1984. "Measuring the value of life saving from consumer reactions to new information," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 53-81, November.
- Krupnick, Alan & Cropper, Maureen & Alberini, Anna & Simon, Nathalie & Itaoka, Kenshi & Akai, Makoto, 1999. "Mortality Risk Valuation for Environmental Policy," Discussion Papers dp-99-47, Resources For the Future.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Hammitt, James K & Graham, John D, 1999. "Willingness to Pay for Health Protection: Inadequate Sensitivity to Probability?," Journal of Risk and Uncertainty, Springer, vol. 18(1), pages 33-62, April.
- Jonathan Gruber, 2001. "Tobacco at the Crossroads: The Past and Future of Smoking Regulation in the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 193-212, Spring.
- Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier.
- Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-19, June.
- Viscusi, W Kip, 1991. "Age Variations in Risk Perceptions and Smoking Decisions," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 577-88, November.
- Cropper, Maureen L & Aydede, Sema K & Portney, Paul R, 1994. "Preferences for Life Saving Programs: How the Public Discounts Time and Age," Journal of Risk and Uncertainty, Springer, vol. 8(3), pages 243-65, May.
- Johannesson, Magnus & Johansson, Per-Olov, 1995.
"Quality of Life and the WTP for an Increased Life Expectancy at an Advanced Age,"
SSE/EFI Working Paper Series in Economics and Finance
85, Stockholm School of Economics.
- Johannesson, Magnus & Johansson, Per-Olov, 1997. "Quality of life and the WTP for an increased life expectancy at an advanced age," Journal of Public Economics, Elsevier, vol. 65(2), pages 219-228, August.
- Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
- W. Kip Viscusi & Wesley A. Magat & Joel Huber, 1999. "Smoking Status and Public Responses to Ambiguous Scientific Risk Evidence," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 250-270, October.
- W. Kip Viscusi & Jahn Hakes, 2003. "Risk ratings that do not measure probabilities," Journal of Risk Research, Taylor & Francis Journals, vol. 6(1), pages 23-43, January.
When requesting a correction, please mention this item's handle: RePEc:hhs:gunwpe:0061. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Andersson)
If references are entirely missing, you can add them using this form.