Willingness to pay and QALYs: What can we learn about valuing foodborne risk?

Andersson, Henrik, Hammitt, James K. and Sundström, Kristian (2015) Willingness to pay and QALYs: What can we learn about valuing foodborne risk? American Journal of Agricultural Economics, 66 (3). pp. 727-752.

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Official URL: http://tse-fr.eu/pub/30286

Abstract

This paper examines the value of reducing foodborne risk. Previous research on the valuation of health risk has been dominated by the study of mortality risk. However, in most cases foodborne illnesses are non-fatal, so we focus on individuals’ preferences for reducing morbidity risk, while also including a realistic, if remote, chance of death. We use a contingent valuation method on a Swedish sample and we estimate a value of a statistical illness consistent with previous findings in the literature. We also examine how willingness to pay (WTP) varies with the expected change in quality-adjusted life years (QALYs) and estimate the WTP per QALY. We find that WTP increases with, though less than proportionally to, a change in QALYs. However, our results also suggest that respondents may have found it difficult to evaluate compound risks of both morbidity and mortality simultaneously.

Item Type: Article
Language: English
Date: September 2015
Refereed: Yes
Uncontrolled Keywords: food risks, QALY, valuation, willingness to pay
JEL codes: D80 - General
I10 - General
Q18 - Agricultural Policy; Food Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 15 Mar 2016 14:13
Last Modified: 24 Jan 2019 00:13
OAI ID: oai:tse-fr.eu:30286
URI: http://publications.ut-capitole.fr/id/eprint/19968

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