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Age, Health and the Willingness to Pay for Mortality Risk Reductions: A Contingent Valuation Survey of Ontario Residents
Authors:Alan Krupnick  Anna Alberini  Maureen Cropper  Nathalie Simon  Bernie O'Brien  Ron Goeree  Martin Heintzelman
Institution:(1) Resources for the Future, USA;(2) University of Maryland, USA;(3) University of Maryland and World Bank, USA;(4) US Environmental Protection Agency, USA;(5) McMaster University, USA
Abstract:We present the results of a contingent valuation survey eliciting willingness to pay (WTP) for mortality risk reductions. The survey was self-administered using a computer by 930 persons in Hamilton Ontario aged 40 to 75. Visual and audio aides were used to enhance risk comprehension. Mean WTP figures for a contemporaneous risk reduction imply a value of a statistical life of approximately C$l.2 to C$3.8 million (1999 C$). Mean WTP is constant with age up to 70 years, and is about 30 percent lower for persons aged 70 and older. WTP is unaffected by physical health status, but is affected by mental health.
Keywords:value of a statistical life  mortality risks  benefit-cost analysis
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