Conference Agenda

This paper presents a large-scale contingent valuation study to elicit the economic value of hypothyroidism, a prevalent endocrine disorder linked to exposure to chemical pollution. We surveyed over 13,500 respondents in twelve countries to estimate their willingness-to-pay (WTP) for reducing the risk of developing hypothyroidism in people who do not have the condition (prevention) and for curing hypothyroidism in people who have the condition. Our research design distinguishes between ex-ante WTP (for those at risk) and ex-post WTP (for those already diagnosed), enabling us to assess the differences in utility before and after experiencing the health condition and the drivers of hedonic adaptation - a phenomenon where individuals adapt to chronic health conditions. The empirical results reveal a substantial disparity between the value per statistical case (VSC) of prevention and the ransom value of health (RVH) for cure, with ex-ante WTP consistently exceeding ex-post WTP. Using counterfactual predictions for respondents with the condition, we demonstrate that this gap can at least in part be explained by hedonic adaptation. Country-specific analyses highlight significant heterogeneity in WTP, reflecting both economic and cultural factors. Our findings underscore the importance of considering both ex-ante utility and ex-post utility in policy analysis. Relying solely on ex-post valuations may underestimate the societal benefits of health policies, while ex-ante values may overstate them, at least for prevalent conditions.