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Willingness to pay and QALYs: What can we learn about valuing foodborne risk?

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  • Andersson, Henrik
  • Hammitt, James
  • Sundström, Kristian

Abstract

This study examines the value of reducing foodborne risk. Research on the valuation of health risk has been dominated by the study of mortality risk. Foodborne risk is, however, in most cases non-fatal and this study therefore focuses on individuals' preferences for reducing morbidity risk related to food consumption. We obtain estimates of the value of a statistical case (VSC) for morbidity risk and the value of a statistical life (VSL) for mortality risk in line with previous findings in the literature. However, we also examine whether WTP is proportional to the expected change in QALYs and estimate a WTP per QALY. We find that WTP is increasing with but not proportional to the change in QALYs. Our monetary estimates are significantly higher than expected and suggest that respondents may have found it dificult to evaluate both a change in risk and health level.

Suggested Citation

  • Andersson, Henrik & Hammitt, James & Sundström, Kristian, 2011. "Willingness to pay and QALYs: What can we learn about valuing foodborne risk?," LERNA Working Papers 11.21.355, LERNA, University of Toulouse.
    • Handle: RePEc:ler:wpaper:25326
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    Cited by:

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    3. S. Olofsson & U.-G. Gerdtham & L. Hultkrantz & U. Persson, 2019. "Value of a QALY and VSI estimated with the chained approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1063-1077, September.
    4. Alban Thomas & Claire Lamine & Benjamin Allès & Yuna Chiffoleau & Antoine Doré & Sophie Dubuisson-Quellier & Mourad Hannachi, 2020. "The key roles of economic and social organization and producer and consumer behaviour towards a health-agriculture-food-environment nexus: recent advances and future prospects," Review of Agricultural, Food and Environmental Studies, Springer, vol. 101(1), pages 23-46, October.
    5. Christian R. C. Kouakou & Thomas G. Poder, 2022. "Willingness to pay for a quality-adjusted life year: a systematic review with meta-regression," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 277-299, March.
    6. Sara Olofsson & Ulf G. Gerdtham & Lars Hultkrantz & Ulf Persson, 2019. "Dread and Risk Elimination Premium for the Value of a Statistical Life," Risk Analysis, John Wiley & Sons, vol. 39(11), pages 2391-2407, November.
    7. Thomas, Alban & Lamine, Claire & Allès, Benjamin & Chiffoleau, Yuna & Doré, Antoine & Dubuisson-Quellier, Sophie & Hannachi, Mourad, 2020. "The key roles of economic and social organization, producer and consumer behaviour towards a HAFEN (Health-Agriculture-Environment-Food Nexus)," TSE Working Papers 20-1068, Toulouse School of Economics (TSE).
    8. Jin, Yana & Andersson, Henrik & Zhang, Shiqiu, 2020. "Do preferences to reduce health risks related to air pollution depend on illness type? Evidence from a choice experiment in Beijing, China," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).

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