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The Social Value of a SARS-CoV-2 Vaccine: Willingness to Pay Estimates from Four Western Countries

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  • Costa-Font, Joan

    (London School of Economics)

  • Rudisill, Caroline

    (University of South Carolina)

  • Harrison, Sayward

    (University of South Carolina)

  • Salmasi, Luca

    (Catholic University - Rome)

Abstract

SARS-CoV-2 vaccines give rise to positive externalities on population health, society and the economy in addition to protecting the health of vaccinated individuals. Hence, the social value of such a vaccine exceeds its market value. This paper estimates the willingness to pay (WTP) for a hypothetical SARS-CoV-2 vaccine in four countries, namely the United States (US), the United Kingdom (UK), Spain and Italy during the first wave of the COVID-19 pandemic when no specific vaccine had been approved nor subsidised. WTP estimates are elicited using a payment card method to avoid 'yea saying' biases, and we study the effect of protest responses, sample selection bias, as well as the influence of trust in government and risk exposure when estimating the WTP. Our estimates suggest evidence of an average value of a hypothetical vaccine of 100-200 US dollars once adjusted by purchasing power parity (PPP). Estimates are robust to a number of checks.

Suggested Citation

  • Costa-Font, Joan & Rudisill, Caroline & Harrison, Sayward & Salmasi, Luca, 2021. "The Social Value of a SARS-CoV-2 Vaccine: Willingness to Pay Estimates from Four Western Countries," IZA Discussion Papers 14475, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14475
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    8. Arcadio A. Cerda & Leidy Y. García, 2021. "Willingness to Pay for a COVID-19 Vaccine," Applied Health Economics and Health Policy, Springer, vol. 19(3), pages 343-351, May.
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    Cited by:

    1. Joan Costa‐Font & Caroline Rudisill & Sayward Harrison & Luca Salmasi, 2023. "The social value of a SARS‐CoV‐2 vaccine: Willingness to pay estimates from four western countries," Health Economics, John Wiley & Sons, Ltd., vol. 32(8), pages 1818-1835, August.
    2. Patrick Carlin & Brian E. Dixon & Kosali I. Simon & Ryan Sullivan & Coady Wing, 2022. "How Undervalued is the Covid-19 Vaccine? Evidence from Discrete Choice Experiments and VSL Benchmarks," NBER Working Papers 30118, National Bureau of Economic Research, Inc.
    3. Costa-Font, Joan & Docrat, Fatima, 2024. "Discrimination backfires? Minority ethnic disparities in vaccine hesitancy," LSE Research Online Documents on Economics 125725, London School of Economics and Political Science, LSE Library.
    4. Bussolo, Maurizio & Sarma, Nayantara & Torre, Iván, 2023. "The links between COVID-19 vaccine acceptance and non-pharmaceutical interventions," Social Science & Medicine, Elsevier, vol. 320(C).
    5. Cozzi, Guido & Galli, Silvia, 2022. "Covid-19 Vaccines, Innovation, and Intellectual Property Rights," GLO Discussion Paper Series 1095, Global Labor Organization (GLO).

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    More about this item

    Keywords

    protest responses; sample selection; payment card; vaccine attitudes; vaccine value; willingness to pay; social value; positive externalities; COVID-19;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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