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Robustness of VSL Values from Contingent Valuation Surveys

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  • Anna Alberini

Abstract

This paper examines factors that may influence the estimates of the Value of a Statistical Life obtained from contingent valuation surveys that elicit the willingness to pay (WTP) for mortality risk reductions. We examine the importance of distributional assumptions, the choice of the welfare statistics of interest, the procedure for computing them, outliers, undesirable response effects, and internal validity of the WTP responses. We illustrate the importance of these factors using dichotomous-choice and open-ended WTP data from four recent contingent valuation surveys.

Suggested Citation

  • Anna Alberini, 2005. "Robustness of VSL Values from Contingent Valuation Surveys," NCEE Working Paper Series 200501, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jan 2005.
    • Handle: RePEc:nev:wpaper:wp200501
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    File URL: https://www.epa.gov/environmental-economics/working-paper-robustness-vsl-values-contingent-valuation-surveys
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    Cited by:

    1. Baker, Rick & Ruting, Brad, 2014. "Environmental Policy Analysis: A Guide to Non‑Market Valuation," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165810, Australian Agricultural and Resource Economics Society.
    2. Bosworth, Ryan & Cameron, Trudy Ann & DeShazo, J.R., 2015. "Willingness to pay for public health policies to treat illnesses," Journal of Health Economics, Elsevier, vol. 39(C), pages 74-88.
    3. Damien Sheehan-Connor & Theodore Bergstrom & Rodney Garratt, 2015. "Saving lives with stem cell transplants," Journal of Risk and Uncertainty, Springer, vol. 51(1), pages 23-51, August.
    4. Brian Mills & Dan Unrau & Laurel Pentelow & Kelsey Spring, 2010. "Assessment of lightning-related damage and disruption in Canada," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 52(2), pages 481-499, February.
    5. Mahmud, Minhaj, 2005. "Contingent Valuation of Mortality Risk Reduction in Developing Countries: A Mission Impossible?," Working Papers in Economics 169, University of Gothenburg, Department of Economics.
    6. Jon Strand, 2005. "Individual and Household Values of Mortality Reductions with Intrahousehold Bargaining," Journal of Risk and Uncertainty, Springer, vol. 31(2), pages 217-236, September.
    7. Alberini, Anna & Chiabai, Aline, 2007. "Urban environmental health and sensitive populations: How much are the Italians willing to pay to reduce their risks?," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 239-258, March.
    8. Alberini, Anna & Ščasný, Milan, 2013. "Exploring heterogeneity in the value of a statistical life: Cause of death v. risk perceptions," Ecological Economics, Elsevier, vol. 94(C), pages 143-155.
    9. Lars Hultkrantz & Gunnar Lindberg & Camilla Andersson, 2006. "The value of improved road safety," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 151-170, March.
    10. Sund, Björn, 2010. "The value of a statistical life for out-of-hospital cardiac arrest victims," Working Papers 2010:4, Örebro University, School of Business.
    11. Andersson, Henrik, 2006. "Willingness to Pay for Road Safety and Estimates of the Risk of Death: Evidence from a Swedish Contingent Valuation Study," Working Papers 2006:5, Swedish National Road & Transport Research Institute (VTI).
    12. Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(4), pages 597-624, August.
    13. Andrea M. Leiter & Gerald J. Pruckner, 2014. "Timing Effects In Health Valuations," Health Economics, John Wiley & Sons, Ltd., vol. 23(6), pages 743-750, June.
    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. Ben Balmford & James D. Annan & Julia C. Hargreaves & Marina Altoè & Ian J. Bateman, 2020. "Cross-Country Comparisons of Covid-19: Policy, Politics and the Price of Life," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 525-551, August.
    16. Andrea M. Leiter & Gerald J. Pruckner, 2005. "Dying in an Avalanche: Current Risks and Valuation," School of Economics and Public Policy Working Papers 2005-16, University of Adelaide, School of Economics and Public Policy.
    17. Raul Brey & Jose Luis Pinto-Prades, 2017. "Age effects in mortality risk valuation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(7), pages 921-932, September.
    18. Leiter, Andrea M. & Rheinberger, Christoph M., 2016. "Risky sports and the value of safety information," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 328-345.

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    More about this item

    Keywords

    contingent valuation; VSL; WTP; risk reductions; robustness; outliers; endogeneity;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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