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(1) Valuing Health Risks from Air Pollution: A Review of the Literature and a Conceptual Model (Hong Sok Kim and Up Lim)
Addressing quesiton:
1. To what extent do people discount future morbidity and mortality
2. Do people place a greater value on avoiding an increased risk of death that is preceded by a considerable period of debilitating morbidity than for an increased risk of a quick death?
3. How do people value avoiding long term health risks for exposed children?
4. How do people value avoiding genetic damage that poses health risks to future generations?
Conceptual Theoretical Model : The first model derives the VSL for a single individual with no family or heirs. The second model explores the VSL for each individual family member where both the father and mother share altruistic concern for the well being of a child. Finally, we present a model, again for a single individual, which combines morbidity and mortality.
(2) Valuing Health Risks from Air Pollution: A Review of the Literature and a Conceptual Model (Brian H.S. Kim, Euijune Kim, Jeasun Lee, Minsu Son)
Applying a single WTP for all mortality risks assumes that the value is invariant with the remaining life expectancy of the person at risk. WTP to reduce mortality risk is related to the remaining life expectancy for those at risk, exactly how WTP to reduce mortality risk varies with the remaining life expectancy of the individual has not been determined empirically. Remaining life expectancy is, of course, closely related to age.
WTP Estimation Model ( Choice Model for Attributes Survey )
1) Characteristics of the Individual: Socio-demographic (age; gender; ethnicity; household income; size of household) . Individual¡¯s personal health risks (personal health history; family health history)
2) Characteristics of the Health Risk: Timing (time until onset of illness; time from onset until death or recovery) ¡¤ Discomfort and impairment (level of discomfort during illness) ¡¤ Probabilities (of being affected by the illness; of dying if affected)
• The results indicate that PROB_GET_DIE and COST are significant and of the expected sign. Other coefficients are not significant probably because of the correlation of the attribute levels and small sample size. Length of illness and time to onset have the expected signs.
• Assuming time until onset is zero, length of illness is zero, and impairment is zero (which is irrelevant when length of illness is zero), the only relevant variables are probability of getting ill and then dying and the cost. This information represents the individual¡¯s tradeoff between the probability of dying now and cost, similar to accidental death VSL estimates.
• Dividing the marginal utility of a 1 in 100,000 chance of getting ill and dying (PROB_GET_DIE) by the marginal utility of money (COST) and multiplying by 100,000 provides an estimate of the VSL: (-0.06620/ -0.00107) * 100,000 = $6,186,000.
