Working Paper: NBER ID: w10012
Authors: James K. Hammitt; Jintan Liu
Abstract: We evaluate the effects of disease type and latency on willingness to pay (WTP) to reduce environmental risks of chronic, degenerative disease. Using contingent-valuation data collected from approximately 1,200 respondents in Taiwan, we find that WTP declines with latency between exposure to environmental contaminants and manifestation of any resulting disease, at a 1.5 percent annual rate for a 20 year latency period. WTP to reduce the risk of cancer is estimated to be about one-third larger than WTP to reduce risk of a similar chronic, degenerative disease. The value of risk reduction also depends on the affected organ, environmental pathway, or payment mechanism: estimated WTP to reduce the risk of lung disease due to industrial air pollution is twice as large as WTP to reduce the risk of liver disease due to contaminated drinking water.
Keywords: No keywords provided
JEL Codes: I18; D18; D69; D81; J17
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Latency (C41) | Willingness to Pay (WTP) (Q26) |
| Disease Type (I12) | Willingness to Pay (WTP) (Q26) |
| Affected Organ (I12) | Willingness to Pay (WTP) (Q26) |