Valuation of human health: An integrated model of willingness to pay for mortality and morbidity risk reductions

    Authors

    S. Gerking; M. Dickie;M. Veronesi

    Comments

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    Abbreviated Journal Title

    J.Environ.Econ.Manage.

    Keywords

    Willingness to pay; Children; Environmental hazards; Integrated model; Morbidity; Mortality; Illness latency; Value of a statistical life; Cancer; Stated preference; CONTINGENT VALUATION; STATISTICAL LIFE; PREFERENCE; ALTRUISM; CHILDREN; PARENTS; Business; Economics; Environmental Studies

    Abstract

    This paper develops and applies an integrated model of mortality and morbidity valuation that is consistent with the principles of welfare economics. To obtain the integrated model, the standard one-period expected utility model of one person facing the prospect of either being alive or dead is extended to incorporate (1) a third health state (sick) with a utility level that is intermediate to utility if healthy and utility if dead, (2) a family perspective in which a parent makes choices about risk exposure both for herself and for a child, and (3) a multi-period framework that allows for possible parent/child differences in illness latency. Monetary benefits of health risk reduction obtained from the integrated model are compared with those that would be computed using the standard model. The integrated model then is applied using data obtained from two field studies of skin cancer and leukemia to demonstrate how it can be used to estimate health benefits of reduced illness and death risks. (C) 2014 Elsevier Inc. All rights reserved.

    Journal Title

    Journal of Environmental Economics and Management

    Volume

    68

    Issue/Number

    1

    Publication Date

    1-1-2014

    Document Type

    Article

    Language

    English

    First Page

    20

    Last Page

    45

    WOS Identifier

    WOS:000340693800002

    ISSN

    0095-0696

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