A Choice Experiment Approach to the Valuation of Mortality
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This paper presents an integrated framework for evaluating the reduction of several types of mortality risk using a Choice Experiment (CE) approach, a type of stated preference technique. Using this approach, we can distinguish the marginal willingness to pay (MWTP) for the amount of risk reduction from the MWTP for the opportunity of risk reduction and therefore calculate the “Quantity-based” Value of a Statistical Life. The risks in our survey include mortality risks due to accident, cancer, and heart disease. The Quantity-based VSL is calculated to be 350 million JPY (in 2002 Japanese Yen, about 2.9 million US dollars). Furthermore, we analyzed the influence of subjective risk perception and population characteristics of the respondents on their MWTP. Estimated results suggest that it is unnecessary to adjust the VSL according to the differences in the type of risk if the VSL is calculated using an adequate approach. However, adjustments for the timing of risk reduction and population characteristics are found to be significant for the execution of benefit transfer.
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- A Choice Experiment Approach to the Valuation of Mortality
Journal of Risk and Uncertainty
Volume 31, Issue 1 , pp 73-95
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- choice experiment
- value of statistical life
- stated preference
- risk perception
- benefit transfer
- Industry Sectors
- Author Affiliations
- 1. Takasaki City University of Economics, 1300 Kaminamie-cho, Takasaki, Gunma, 370-0801, Japan
- 2. National Institute of Advanced Industrial Science and Technology, Onogawa 16-1, Tsukuba, 305-8569, Japan
- 3. Kobe University, Graduate School of Economics, Rokkodai 2-1, Nada, Kobe, 657-8501, Japan