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Willingness to pay to reduce health costs associated with bushfire smoke

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  • Chalak, Morteza
  • Burton, Michael

Abstract

Invasion of gamba grass in Northern Territory increases fire fuel and bushfire smoke. Increase in bushfire smoke decreases air quality and have negative health impacts. The aim of this study is to assess people’s willingness pay in order to control bushfire smoke and reduce its health risks. We also aim to assess what part of their willingness to pay is derived from altruism. To do this, we form two versions of a survey. The first version aims to assess willingness to pay which may consist of both altruism and personal benefits. The framing tells the respondents to assume that increases in bushfire smoke will affect their own personal health. In the second version of the survey that aims to assess only altruism, respondents will be limited to those who do not have asthma. We tell these respondents that increase in bushfire smoke will only affect people with asthma. Visual aides were used to enhance risk comprehension. Results showed that analysing altruistic value is important when valuing environmental assets. Altruistic value of statistical life is calculated at $5000,000. We showed that distinguishing paternalistic and non-paternalistic altruism is important.48% of WTP was non-paternalistic altruism. Paternalistic altruism is estimated at $2600,000.

Suggested Citation

  • Chalak, Morteza & Burton, Michael, 2016. "Willingness to pay to reduce health costs associated with bushfire smoke," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235364, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235364
    DOI: 10.22004/ag.econ.235364
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    Environmental Economics and Policy;

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