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The Value Of Risk - Free Cigarettes - Do Smokers Underestimate The Risk?

  • Hammar, Henrik

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Johansson-Stenman, Olof

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

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.

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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 61.

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Length: 18 pages
Date of creation: 30 Nov 2001
Date of revision:
Publication status: Published in Health Economics, 2004, pages 59-71.
Handle: RePEc:hhs:gunwpe:0061
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page:

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