Scope and scale insensitivities in a contingent valuation study of risk reductions

Norinder, Anna; Hjalte, Krister; Persson, Ulf

doi:10.1016/s0168-8510(01)00117-8

Cited by 26 publications

(20 citation statements)

References 18 publications

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“…A speculation about why this unexpected difference exists could be that the cause of death is important when examining WTP for death risk reductions, as was found by Norinder et al (2001). We might measure some kind of preference for 'individual freedom', compared to further road traffic safety measures that are perceived as limiting freedom of action (e.g.…”

Section: Discussionmentioning

confidence: 99%

Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

Sund¹

2017

Nordic J Health Eco

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Economic evaluation of policies regarding out-of-hospital cardiac arrest (OHCA) is important. The value of a statistical life (VSL) for OHCA victims is the most important component in a cost-benefit analysis of interventions that have the possibility to reduce mortality from this cause. This value is not known. We use responses to a national Swedish mail survey, based on the stated-preference technique to directly elicit individuals' hypothetical willingness to pay for a reduced risk of dying from OHCA. A lower-bound estimate of VSL for OHCA would be in range of SEK 30 to 50 million. The value is found to be higher than for comparable VSL estimates from the transport sector, even though individuals who suffer OHCAs are generally older and less healthy than people who die in road traffic accidents. The results indicate that it is not an overestimation to use the 'baseline' VSL value from the transport sector (SEK 24 million) in cost-benefit analysis of OHCA policy decisions and that the cause of death is important when examining willingness to pay for death risk reductions. We do not support a general declining VSL due to the age of the victims, i.e. a 'senior death discount', for this cause of death.JEL classification: D61, I14, I18

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Section: Discussionmentioning

confidence: 99%

Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

Sund¹

2017

Nordic J Health Eco

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“…Using two CV studies from Sweden, Norinder, Hjalte and Persson (2001) find that when the respondents have a reference point, i.e., when the same respondent valuesseveral sizes of risk reductions, WTP is internally sensitive to scope. Preference uncertainty can give rise to hypothetical and scale biases.…”

Section: Size Of Risk Reductionmentioning

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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“…If the programme is described vaguely it is to be expected, therefore, that WTP responses will be vague, and thus, for example, insensitive to the scope of the programme offered [11,12].…”

Section: Introductionmentioning

confidence: 99%

Construction of the contingent valuation market in health care:a critical assessment

2002

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Contingent valuation (CV) has been criticised for being too hypothetical, with expressed values bearing little relation to actual values. The magnitude of this divergence, however, depends upon how realistic and believable the contingent market is. This paper presents an overview of five key aspects in the construction of the contingent market: (i) scenario development and presentation; (ii) payment vehicle; (iii) expression of risk; (iv) time period of valuation; and (v) survey administration. CV studies in health care since 1985, totalling 111, are critically reviewed with respect to these five aspects. It is concluded that CV studies in health care have performed poorly in the construction, specification and presentation of the contingent market, and that there has been little, if any, improvement in this respect over the last 15 years. Suggestions are made concerning why this may be the case, and how the construction of the contingent market may be improved in future.

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Scope and scale insensitivities in a contingent valuation study of risk reductions

Cited by 26 publications

References 18 publications

Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

The value of mortality risk reductions in Delhi, India

Construction of the contingent valuation market in health care:a critical assessment

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