Willingness to pay for improving fatality risks and asthma symptoms: Values for children and adults of all ages

• Published in: Resource and energy economics Vol. 33; no. 2; pp. 410 - 425
• Main Authors: Blomquist, Glenn C., Dickie, Mark, O’Conor, Richard M.
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.05.2011; Elsevier; Elsevier Sequoia S.A
• Series: Resource and Energy Economics
• Subjects: Adults; Age; Asthma; Children; Economics; Fatalities; Mortality; Mortality risks; Risk; Risk assessment; Risk–risk tradeoff; Senior discount; Studies; Valuation methods; Value of children' s health Value of statistical life Senior discount Risk-risk tradeoff Willingness to pay Asthma Mortality risks; Value of children's health; Value of statistical life; Willingness to pay; Senior discount; Mortality risks; J17; Value of statistical life; Value of children's health; D64; D13; I12; Q51; Risk–risk tradeoff; Willingness to pay; Asthma
• ISSN: 0928-7655; 1873-0221
• DOI: 10.1016/j.reseneeco.2010.05.004

We examine effects of age on valuation of mortality and morbidity risks using a two-stage contingent valuation survey and a sample including parents of children aged 4–17 years and adults aged 18–92. The survey used a hypothetical improved asthma therapy to elicit (1) tradeoffs between asthma control and fatality risk, (2) willingness to pay (WTP) for reduced fatality risk, and (3) WTP for asthma control. The mean value of statistical life (VSL) at average age is $3.8M, but age affects VSL and nonlinearly. Estimated VSL is highest at age four ($14.1M), falls until age 30 ($3.7M), rises until age 66 ($6.7M), and then falls to $1.5M by age 92. Results from the wide age range considered may partly reconcile apparently conflicting results from previous studies focused on narrower age ranges. The value of asthma control is not as strongly related to age as VSL and ranges from $1700 to $4000 annually.