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Subjective risk belief function in the field: Evidence from cooking fuel choices and health in India

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  • Hide-Fumi Yokoo

    (Graduate School of Economics, Hitotsubashi University, Naka 2-1, Kunitachi, Tokyo 186-8601, Japan & Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)

  • Toshi H. Arimura

    (Faculty of Political Science and Economics & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)

  • Mriduchhanda Chattopadhyay

    (Graduate School of Economics, Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan.)

  • Hajime Katayama

    (Faculty of Commerce & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)

Abstract

We investigate the accuracy of the perceptions of health risks in India. To examine systematic risk misperception, which is relevant to policy debates, we present the concept of the subjective risk belief function (SRBF). The context of our study is the risk of developing physical symptoms related to household air pollution caused by cooking. Using field data collected from 588 respondents in 17 villages in West Bengal, we regress the probability of symptoms conditional on fuel choices to estimate the respondent-specific health risk changes. Then, we elicit the subjective probabilistic beliefs using an interactive method with visual aids. Considering the estimated risks as objective risks, we estimate the linear SRBF. Our estimated coefficient of the average SRBF is in the range of 0.58 to 0.79, which implies a slight underestimation of the change in risk when switching from cooking with firewood to cooking with liquefied petroleum gas, although the respondents have a qualitatively accurate belief. We further find that risk misperception is correlated with religion but not with age or education.

Suggested Citation

  • Hide-Fumi Yokoo & Toshi H. Arimura & Mriduchhanda Chattopadhyay & Hajime Katayama, 2020. "Subjective risk belief function in the field: Evidence from cooking fuel choices and health in India," RIEEM Discussion Paper Series 2003, Research Institute for Environmental Economics and Management, Waseda University.
    • Handle: RePEc:was:dpaper:2003
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    More about this item

    Keywords

    Belief; Cooking fuel choice; Health risk; India; Risk misperception; Subjective probabilistic expectation;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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