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An investigation into procedural (in)variance in the valuation of mortality risk reductions

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  • Kjær, Trine
  • Nielsen, Jytte Seested
  • Hole, Arne Risa

Abstract

This study investigates whether elicited preferences are affected by the presentation of mortality risks in a stated preference survey. We elicited willingness to pay for public risk reducing initiatives under three different but outcome equivalent presentation format. Results from a discrete choice experiment demonstrate that presentation format influences the valuation of mortality risk reductions, which to varying degrees depends on the respondent's level of concern and numeracy. Marginal willingness to pay for a risk reduction increases significantly when framed in terms of avoided fatalities compared to corresponding frequencies. Furthermore, we find that less numerate respondents are more influenced by the inclusion of the number of fatalities in the presentation format. The same pattern is observed for respondents who express a higher degree of concern for a traffic accident.

Suggested Citation

  • Kjær, Trine & Nielsen, Jytte Seested & Hole, Arne Risa, 2018. "An investigation into procedural (in)variance in the valuation of mortality risk reductions," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 278-284.
    • Handle: RePEc:eee:jeeman:v:89:y:2018:i:c:p:278-284
    DOI: 10.1016/j.jeem.2018.04.004
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    1. Andersson, Henrik & Hole, Arne Risa & Svensson, Mikael, 2016. "Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 41-53.
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    5. Jytte Nielsen & Susan Chilton & Michael Jones-Lee & Hugh Metcalf, 2010. "How would you like your gain in life expectancy to be provided? An experimental approach," Journal of Risk and Uncertainty, Springer, vol. 41(3), pages 195-218, December.
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    Cited by:

    1. Hangjian Wu & Emmanouil Mentzakis & Marije Schaafsma, 2022. "Exploring Different Assumptions about Outcome-Related Risk Perceptions in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 531-572, March.
    2. Balmford, Ben & Bateman, Ian J. & Bolt, Katherine & Day, Brett & Ferrini, Silvia, 2019. "The value of statistical life for adults and children: Comparisons of the contingent valuation and chained approaches," Resource and Energy Economics, Elsevier, vol. 57(C), pages 68-84.
    3. Jytte Seested Nielsen & Susan Chilton & Hugh Metcalf, 2019. "Improving the risk–risk trade-off method for use in safety project appraisal responses," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 61-86, January.

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    More about this item

    Keywords

    Discrete choice experiment; Framing; Mortality risk; Procedural invariance; Public policy; Stated preferences; Willingness to pay;
    All these keywords.

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • D6 - Microeconomics - - Welfare Economics

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