A WTP model showing the relationships between three approaches for pollution

Wilson, C. (1999) A WTP model showing the relationships between three approaches for pollution. Discussion Paper No 268, Department of Economics, The University of Queensland.

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
DP268Dec99.pdf DP268Dec99.pdf application/pdf 245.70KB 1434
Author Wilson, C.
Title A WTP model showing the relationships between three approaches for pollution
School, Department or Centre Department of Economics
Institution The University of Queensland
Report Number Discussion Paper No 268
Publication date 1999-12-01
Language eng
Subject 340202 Environment and Resource Economics
Abstract/Summary In this paper, a simple willingness to pay (WTP) model that shows the theoretical relationships among three valuation approaches that can be used to measure changes in health resulting from pollution is developed. The three valuation approaches considered are the contingent valuation (CV), cost of illness (COI) and the defensive behaviour approaches. After showing the relationships between the three valuation approaches, the model demonstrates that the CV approach exceeds the COI and the defensive behaviour approaches. The theoretical results are supported by field survey data. The pollution referred to in this paper is direct exposure to pesticides by farmers during handling and spraying on their farms.
Keyword Pollution
Contingent valuation method
Pesticides
Defensive behaviour method
Cost of illness method
References Abeygunawardena, P. and Bessler, D. A. 1989, 'Assessment of the Green Revolution in Sri Lanka: Adaptive regressions approach', Indian Journal of Agricultural Economics, vol. 44, pp. 177-181. Alberini, A., Cropper, M., Fu, T., Krupnick, A., Liu, J. T., Shaw, D. and Harrington, W. 1997, 'Valuing health effects of air pollution in developing countries: The case of Taiwan', Journal of Environmental Economics and Management, vol. 34, pp. 107-126. Berger, M. C., Blomquist, G. L., Kenkel, D. and Tolley, G. S. 1987, 'Valuing changes in health risks: A comparison of alternative measures', Southern Economic Journal, vol. 53, pp. 967-984. Chestnut, L. G., Colome, S. D., Keller, L. R., Lambert, W. E., Ostrow, B., Rowe, R. D. and Wojciechowski, S. L. 1988, Heart disease patients' averting behaviour, costs of illness and willingness-to-pay to avoid angina episodes, Report for USEPA contract no. 68-01-7033, U. S. Environmental Protection Agency, Washington, DC. Chestnut, L. G., Keller, R., Lambert, W. E. and Rowe, R. D. 1996, 'Measuring heart patients willingness to pay for changes in angina symptoms', Medical Decision Making, vol. 76, pp. 65-77. Courant, P. N. and Porter, R. C. 1981, 'Averting expenditure and the cost of pollution', Journal of Environmental Economics and Management, vol. 8, pp. 321-9. Cropper, M. L. 1981, 'Measuring the benefits from reduced morbidity', American Economic Review, vol. 71, pp. 235-240. Cropper, M. L. and Freeman, A. M. 1991, 'Environmental health effects' in Measuring the Demand for Environmental Quality, eds. J. B. Braden and C. D. Kolstad, Elsevier Science Publishers, Amsterdam, B. V. (North Holland). Dickie, M., Gerking, S., Schulze, W., Coulson, A. and Tashkin, D. 1986, 'Values of symptoms of ozone exposure: An application of the averting behaviour method, in Improving Accuracy and Reducing Costs of Environmental Benefit Assessments, Washington: U. S. Environmental Protection Agency. Dickie, M., Gerking, S., Brookshire, D., Coursey, D., Schulze, W., Coulson, A. and Tashkin, D. 1987, 'Reconciling averting behaviour and contingent valuation benefit estimates of reducing symptoms of ozone exposure draft', in Improving Accuracy and Reducing Costs of Environmental Benefit Assessments, Washington: U. S. Environmental Protection Agency. Dickie, M. and Gerking, S. 1991, 'Willingness to pay for ozone control: Inferences from the demand for medical care' Journal of Environmental Economics and Management, vol. 21, pp. 1-16. Gerking, S. and Stanley, L. R.. 1986, 'An economic analysis of air pollution and health: The case of St. Louis', Review of Economics and Statistics, vol. 68, pp. 115-121. Hanley, N and Spash, C. L. 1993, Cost-Benefit Analysis and the Environment, Edward Elgar, Aldershot. Harrington, W., Krupnick, A. J. and Walter, O. 1989, 'The benefits of preventing an outbreak of giardiosis', Journal of Urban Economics, vol. 25, pp. 116-137. Harrington, W. and Portney, P. R. 1987, 'Valuing the benefits of health and safety regulation', Journal of Urban Economics, vol. 22, pp. 101-112. Kenkel, D., 1994, 'Cost of illness approach' in: Valuing health for policy. Eds G. Tolley, D. Kenkel, and R. Fabian, University of Chicago Press, Ltd., London. Kenkel, D., Berger, M. and Blomquist, G. 1994, 'Contingent valuation of health' in Valuing Health for Policy, eds G. Tolley., D. Kenkel, and R. Fabian, University of Chicago Press, London. Loehman, E. T., Berg, S. V., Arroyo, A. A, Hedinger, R. A., Schwartz, J. M., Shaw, M. E., Fahien, R. W., De, V. H., Fishe, R. P., Rio, D. E., Rossley, W. F. and Green A. E. S. 1979, 'Distributional analysis of regional benefits and cost of air quality control', Journal of Environmental Economics and Management, vol. 6, pp. 222-243. Mitchell, R. C. and Carson, R. T. 1989, Using Surveys to Value Public Goods, John Hopkins University, Baltimore, for Resources for the Future. Murdoch, J. C and Thayer, M. A. 1990, 'The benefits of reducing the incidence of nonmelanoma skin cancers: A defensive expenditures approach', Journal of Environmental Economics and Management, vol. 18, pp. 107-119. National Oceanic and Atmospheric Administration (NOAA), 1993, Report of the NOAA on contingent valuation, Federal Register, vol. 58, no. 10, Friday, January 15. Rowe, R. D. and Chestnut, L. G. 1984, Valuing changes in morbidity: Willingness to pay vs cost of illness measures, Report to Energy and Resources Consultants, Boulder, Colorado. Wilson, C. 1998, Cost and policy implications of agricultural pollution with special reference to pesticides. Ph.D thesis, Department of Economics, University of St Andrews, Scotland. Whittington, D. 1998, 'Administering contingent valuation surveys in developing countries', World Development, vol. 26, pp. 21-30.

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
 
Versions
Version Filter Type
Citation counts: Google Scholar Search Google Scholar
Access Statistics: 606 Abstract Views, 1433 File Downloads  -  Detailed Statistics
Created: Thu, 05 Feb 2004, 10:00:00 EST by Belinda Weaver (EA) on behalf of Marketing, Outreach and Corporate Services