Context and the VSL: Evidence from a Stated Preference Study in Italy and the Czech Republic

Alberini, Anna; Ščasný, Milan

doi:10.1007/s10640-010-9444-8

Cited by 99 publications

(38 citation statements)

References 53 publications

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“…Examples are Alberini and Scasny (2010) and Alberini and Scasny (2011) who give Bbasic information^and Tsuge et al (2005). A full meta-analysis of stated preference studies (OECD 2012) did not find evidence to suggest a cancer premium, instead recognising that the morbidity preceding fatality generates a higher value for cancer risk reductions, but recommending that morbidity costs prior to death should be added separately as opposed to being incorporated in a cancer premium.…”

Section: Context Latency and Cancer Risksmentioning

confidence: 99%

Dread and latency impacts on a VSL for cancer risk reductions

et al. 2016

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We propose a structural relationship between the value of preventing a statistical cancer fatality and the value of statistical life (VSL) for risks of an instantaneous road accident fatality. This relationship incorporates a context effect reflecting both the illness or 'morbidity' associated with cancer fatality and the 'dread' or horror associated with the prospect of eventual death from cancer, as well as a latency effect that captures the discounting likely to arise because the onset of the symptoms of cancer typically occurs after some delay. We use a Risk-Risk trade-off study to validate this model by directly estimating the influence of context and latency effects upon the relative size of the VSL for cancer and for road accidents, confirming that both effects are significant and estimating their size using regression analysis. We show that morbidity accounts for the majority of the context premium. We use the elicited coefficients to reconstruct VSL estimates for a range of cancers characterised by their latency and morbidity periods.

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Section: Context Latency and Cancer Risksmentioning

confidence: 99%

Dread and latency impacts on a VSL for cancer risk reductions

et al. 2016

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“…Other studies have used the multi-attribute design of CE to examine the effect of context on respondents' WTP (Tsuge, Kishimoto et al 2005, Alberini andŠcasný 2011).…”

Section: Introductionmentioning

confidence: 99%

Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety

Andersson

Hole

Svensson

2016

Journal of Environmental Economics and Management

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This study elicits individual preferences for reducing morbidity and mortality risk in the context of an infectious disease (campylobacter) using choice experiments. Respondents are in the survey asked to choose between different policies that, in addition to the two health risks, also vary with respect to source of disease being targeted (food or water), when the policy takes place (in time), and the monetary cost. Our results in our baseline model are in line with expectations; respondents prefer the benefits of the program sooner than later, programs that reduce both the mortality and morbidity risk, and less costly programs. Moreover, our results suggest that respondents prefer water-compared with food-safety programs. However, a main objective of this study is to examine scope sensitivity of mortality risk reductions using a novel approach. Our results from a split-sample design suggest that the value of the mortality risk reduction, defined as the value of a statistical life, is SEK 3 177 (USD 483 million) and SEK 50 million (USD 8 million), respectively, in our two sub-samples. This result cast doubt on the standard scope sensitivity tests in choice experiments, and the results also cast doubt on the validity and reliability of VSL estimates based on stated preference (and revealed preference) studies in general. This is important due to the large empirical literature on non-market evaluation and the elicited values' central role in policy making, such as benefit-cost analysis.

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“…This indicates that the responses to our valuation questions are consistent with economic theory and "scope" requirements (Corso et al, 2001;Hammitt and Graham, 1999). 11 However, the coefficients on pain and quality-of-life indicators are estimated imprecisely, are from earlier studies at the same locales (Alberini and Ščasný, 2011). The VSCC is somewhat 11 Briefly, the responses meet the "scope" requirement if the WTP is proportional to the size of the risk reduction, which means there is a single VSL.…”

Section: Resultsmentioning

confidence: 99%

“…Jones-Lee et al, 1985;Mendeloff and Kaplan, 1989;McDaniels et al, 1992;Savage, 1993;Tolley et al, 1994;Magat et al, 1996;Van Houtven et al, 2008). Stated-preference valuation studies have found either i) little evidence that the cancer VSL is higher than the VSL for other causes of death (Hammitt and Liu, 2004;Hammitt and Haninger, 2010;Chestnut et al, 2012), ii) modest cancer "discounts" (Tsuge et al, 2005, andAdamowicz et al, 2011), or iii) large variations associated with different causes of death (cancer, respiratory disease, road traffic accidents), resulting in cancer premia of 90-156% (Alberini and Ščasný, 2011;. A metaanalysis by OECD (2012) concludes that there seems to be no systematic cancer premium, and notes that in benefit-cost analyses morbidity costs prior to death should be added to the mortality benefits.…”

Section: Introductionmentioning

confidence: 99%

The benefits of avoiding cancer (or dying from cancer): Evidence from a four- country study

Alberini

Ščasný

2018

Journal of Health Economics

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Abstract. We use stated-preference methods to estimate the cancer Value per Statistical Life (VSL) and Value per Statistical Case (VSCC) from a representative sample of 45-60-year olds in four countries in Europe. We ask respondents to report information about their willingness to pay for health risk reductions that are different from those used in earlier valuation work because they are comprised of two probabilities-that of getting cancer, and that of dying from it (conditional on getting it in the first place). The product of these two probabilities is the unconditional cancer mortality risk. Our hypothetical risk reductions also include two qualitative attributes-quality-of-life impacts and pain. The results show that respondents did appear to have an intuitive grasp of compound probabilities, and took into account each component of the unconditional cancer mortality risk when answering the valuation questions. We estimate the cancer VSL to be between € 1.9 and 5.7 million, depending on whether the (unconditional) mortality risk was reduced by lowering the chance of getting cancer, increasing the chance of surviving cancer, or both. The VSCC is estimated to be up to € 0.550 million euro, and its magnitude depends on the initial (conditional) cancer mortality and on the improvement in survival. We interpret these as "pure" mortality and cancer risk values, stripped of morbidity, pain or quality-of-life effects. The survey responses show that impacts on daily activities and pain have little or no effect on the WTP to reduce the adverse health risks.

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Context and the VSL: Evidence from a Stated Preference Study in Italy and the Czech Republic

Cited by 99 publications

References 53 publications

Dread and latency impacts on a VSL for cancer risk reductions

Dread and latency impacts on a VSL for cancer risk reductions

Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety

The benefits of avoiding cancer (or dying from cancer): Evidence from a four- country study

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