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Willingness to pay for improving fatality risks and asthma symptoms: Values for children and adults of all ages

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  • Blomquist, Glenn C.
  • Dickie, Mark
  • O'Conor, Richard M.

Abstract

We examine effects of age on valuation of mortality and morbidity risks using a two-stage contingent valuation survey and a sample including parents of children aged 4-17 years and adults aged 18-92. The survey used a hypothetical improved asthma therapy to elicit (1) tradeoffs between asthma control and fatality risk, (2) willingness to pay (WTP) for reduced fatality risk, and (3) WTP for asthma control. The mean value of statistical life (VSL) at average age is $3.8M, but age affects VSL and nonlinearly. Estimated VSL is highest at age four ($14.1M), falls until age 30 ($3.7M), rises until age 66 ($6.7M), and then falls to $1.5M by age 92. Results from the wide age range considered may partly reconcile apparently conflicting results from previous studies focused on narrower age ranges. The value of asthma control is not as strongly related to age as VSL and ranges from $1700 to $4000 annually.

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  • Blomquist, Glenn C. & Dickie, Mark & O'Conor, Richard M., 2011. "Willingness to pay for improving fatality risks and asthma symptoms: Values for children and adults of all ages," Resource and Energy Economics, Elsevier, vol. 33(2), pages 410-425, May.
    • Handle: RePEc:eee:resene:v:33:y:2011:i:2:p:410-425
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    2. Gerking, Shelby & Dickie, Mark & Veronesi, Marcella, 2014. "Valuation of human health: An integrated model of willingness to pay for mortality and morbidity risk reductions," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 20-45.
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    5. Brad R. Humphreys & Gary A. Wagner & John C. Whitehead & Pamela Wicker, "undated". "Willingness to pay for COVID-19 environmental health risk reductions in consumption: Evidence from U.S. professional sports," Working Papers 21-05, Department of Economics, Appalachian State University.
    6. Chang, Angela.Y & Hammitt, James K. & Resch, S.C & Robinson, Lisa A., 2017. "The economics in 'Global Health 2035': a sensitivity analysis of the value of a life year estimates," TSE Working Papers 17-756, Toulouse School of Economics (TSE).
    7. Rachel Baker & Anna Bartczak & Susan Chilton & Hugh Metcalf, 2012. "Did people "buy" what was "sold"? A qualitative evaluation a Contingent Valuation survey information set for gains in life expectancy," Working Papers 2012-16, Faculty of Economic Sciences, University of Warsaw.
    8. Maureen Cropper & James K. Hammitt & Lisa A. Robinson, 2011. "Valuing Mortality Risk Reductions: Progress and Challenges," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 313-336, October.
    9. Aldy, Joseph E. & Smyth, Seamus J., 2014. "Heterogeneity in the Value of Life," RFF Working Paper Series dp-14-13, Resources for the Future.
    10. Anna Bartczak & Wiktor Budziński & Susan Chilton & Rebecca McDonald & Jytte Seested Nielsen, 2021. "Altruism and efficient allocations in three-generation households," Journal of Risk and Uncertainty, Springer, vol. 62(2), pages 113-135, April.
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    12. W. Kip Viscusi, 2020. "Pricing the global health risks of the COVID-19 pandemic," Journal of Risk and Uncertainty, Springer, vol. 61(2), pages 101-128, October.
    13. Kniesner, Thomas J. & Viscusi, W. Kip, 2024. "A Tale of the Tails: The Value of a Statistical Life at the Tails of the Age Distribution," IZA Discussion Papers 16867, Institute of Labor Economics (IZA).
    14. 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.
    15. Jerrod Penn & Wuyang Hu, 2023. "Adjusting and Calibrating Elicited Values Based on Follow-up Certainty Questions: A Meta-analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(4), pages 919-946, April.
    16. W. Kip Viscusi, 2021. "Economic lessons for COVID‐19 pandemic policies," Southern Economic Journal, John Wiley & Sons, vol. 87(4), pages 1064-1089, April.
    17. W. Viscusi, 2010. "The heterogeneity of the value of statistical life: Introduction and overview," Journal of Risk and Uncertainty, Springer, vol. 40(1), pages 1-13, February.
    18. Hammitt, James K. & Haninger, Kevin, 2017. "Valuing nonfatal health risk as a function of illness severity and duration: Benefit transfer using QALYs," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 17-38.
    19. Han, Ahram & Ten, Gi Khan & Wang, Shun, 2023. "Gray skies and blue moms: The effect of air pollution on parental life satisfaction," World Development, Elsevier, vol. 163(C).
    20. Carla Guerriero & John Cairns & Fabrizio Bianchi & Liliana Cori, 2016. "Are Children Rational Decision Makers when they are Asked to Value their own Health? A Contingent Valuation Study Conducted with Children and their Parents," CSEF Working Papers 448, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    21. Ketcham, Jonathan & Kuminoff, Nicolai & Saha, Nirman, 2023. "Valuing Statistical Life Using Seniors' Medical Spending," RFF Working Paper Series 23-16, Resources for the Future.
    22. Irene Mussio & Sylvia Brandt & Michael Hanemann, 2021. "Parental beliefs and willingness to pay for reduction in their child's asthma symptoms: A joint estimation approach," Health Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 129-143, January.
    23. Juleen Lam & Erica Koustas & Patrice Sutton & Amy M Padula & Michael D Cabana & Hanna Vesterinen & Charles Griffiths & Mark Dickie & Natalyn Daniels & Evans Whitaker & Tracey J Woodruff, 2021. "Exposure to formaldehyde and asthma outcomes: A systematic review, meta-analysis, and economic assessment," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-44, March.
    24. Jones, Benjamin A. & Berrens, Robert P. & Jenkins-Smith, Hank & Silva, Carol & Ripberger, Joe & Carlson, Deven & Gupta, Kuhika & Wehde, Wesley, 2018. "In search of an inclusive approach: Measuring non-market values for the effects of complex dam, hydroelectric and river system operations," Energy Economics, Elsevier, vol. 69(C), pages 225-236.

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