Consistency and construction in stated WTP for health risk reductions: A novel scope-sensitivity test

Bateman, Ian J.; Brouwer, Roy

doi:10.1016/j.reseneeco.2006.06.001

Cited by 31 publications

(26 citation statements)

References 61 publications

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“…This result is in line with earlier studies that find economic values of environmental and natural resources to be scope sensitive. These resources include visibility of national parks (Smith and Osborne 1996), habitat for the giant panda (Kontoleon and Swanson 2003), and health risk reductions (Bateman and Brouwer 2006). To our knowledge, scoping sensitivity has not been demonstrated for coral reefs before.…”

Section: Meta-regression Resultsmentioning

confidence: 90%

The recreational value of coral reefs: A meta-analysis

Brander

Beukering

Cesar

2007

Ecological Economics

290

168

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Coral reefs are highly productive ecosystems that provide a variety of valuable goods and services, including recreational opportunities. The open-access nature and public good characteristics of coral reefs often result in them being undervalued in decision making related to their use and conservation. In response to this, there now exists a substantial economic valuation literature on coral reefs. For the purposes of conducting a meta-analysis of this literature, we collected 166 coral reef valuation studies, 52 of which provided sufficient information for a statistical meta-analysis, yielding 100 separate value observations in total. Focusing on recreational values, we use US$ per visit as the dependent variable in our meta-analysis. The meta-regression results reveal a number of important factors in explaining variation in coral reef recreational values, notably the area of dive sites and the number of visitors. Different valuation methods are shown to produce widely different values, with the contingent valuation method producing significantly lower value estimates. Using a multi-level modelling approach we also control for authorship effects, which proves to be highly significant in explaining variation in value estimates. We assess the prospects for using this analysis for out-of-sample value transfer, and find average transfer errors of 186%. We conclude that there is a need for further high-quality valuation research on coral reefs.

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Section: Meta-regression Resultsmentioning

confidence: 90%

The recreational value of coral reefs: A meta-analysis

Brander

Beukering

Cesar

2007

Ecological Economics

290

168

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“…Finally, other examples include specific risks from fatal/chronic diseases; for example, WTP to reduce trihalomethanes in public drinking water systems that will reduce chances of death due to cancer (Carson & Mitchell, 2006), WTP for the reduction in risk of dying from air pollution related diseases (Hammitt and Liu, 2004;Chilton et al, 2004), from pneumonia (Morris and Hammit, 2001), cardiovascular diseases (Alberini and Chiabai, 2005), skin cancer due to exposure to UV rays (Dickie and Gerking, 1996;Bateman and Brouwer, 2005), radiation induced cancers (Ami and Leblanc, 2000).…”

Section: Contingent Valuation Methods (Cvm)mentioning

confidence: 99%

“…Although, using Monte-Carlo simulations, Lusk and Bailey (2005) observe that a large sample size can substitute for poor experimental design, Bateman et al (2005) find that introduction of alternatives that are irrelevant 12 in choice experiments produces biased estimates.…”

Section: Conjoint Analysismentioning

confidence: 99%

The value of mortality risk reductions in Delhi, India

2007

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Road accidents kill nearly 1.2 million people each year worldwide, two-thirds of whom live in developing countries. Traffic crashes may indeed become the third leading cause of death in developing countries by the year 2020 (Murray and Lopez, 1996). For governments in developing countries to make informed decisions about investments in traffic safety, it is imperative that the benefits of road traffic improvements be monetized and compared with costs. This, however, requires estimates of the value of reductions in risk of death.The goal of the dissertation is to provide estimates of the value of mortality risk reductions in a traffic safety context in Delhi, India. To estimate the value of road safety improvements in Delhi requires understanding the nature of developing country traffic risks. Methods of valuing traffic fatalities used in high-income countries based on seatbelt use or purchase of safer cars are not applicable here.In my survey I asked 1200 commuters what they would pay to reduce their own risk of dying as a (a) pedestrian, (b) driver of a two-wheeler, and (c) commuter, regardless of travel mode. These scenarios mirror the bulk of fatal accidents in Delhi. I find that mean WTP for mortality risk reduction increases with the size of risk reduction, as predicted by economic theory.WTP for a given risk change increases with income and education. The estimation results broadly confirm the Bayesian updating assumption, in that WTP increases with baseline exposure to risk, measured by commute time, whether the respondent travels as part of his job and whether he drives a two-wheeler. Mean WTP is three times larger for a respondent who drives a two-wheeler and travels on the job than for one who does not.The results of my survey indicate that the VSL is individuated, i.e., it varies across groups of potential beneficiaries of traffic safety programs (two-wheeler drivers, persons with bachelors degree, etc.). For the most highly exposed individuals-the VSL is about $150,000 (PPP, 2005

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“…The literature review conducted in Hammitt and Graham (1999) also points out the fact that plenty of respondents state the same WTP, even if they get to answer different risk reduction questions after one another. Moreover, Bateman and Brouwer (2006) asked respondents to state their WTP to reduce skin-cancer risk for themselves and their household and tested for weak scale sensitivity. They used a split sample design, and "[i]n summary" (p. 210) found weak scale sensitivity in a subsample that received dichotomous choice questions, but in contrast to our findings, no weak scale sensitivity in a subsample that answered open-ended questions.…”

Section: Discussionmentioning

confidence: 99%