Willingness to Pay for Mortality Risk Reductions: Does Latency Matter?

Anna Alberini, Maureen Cropper, Alan Krupnick, and Nathalie B. Simon , Journal of Risk and Uncertainty 32(3) , 231-245 , January 2006.

Using results from two contingent valuation surveys conducted in Canada and the U.S., we explore the effect of a latency period on willingness to pay (WTP) for reduced mortality risk using a structural model. We find that delaying the time at which the risk reduction occurs by 10 to 30 years reduces WTP by more than 60% for respondents in both samples aged 40 to 60 years. The implicit discount rates are equal to 3.0–8.6% for Canada and 1.3–5.6% for the U.S.

Links to Researchers