Conference Agenda

There is growing recognition of the need for estimates of willingness to pay (WTP) to reduce risk of non-fatal health outcomes to inform public decisions. A major reason for this gap in the health valuation literature is simply the great diversity of non-fatal illnesses, what a high-level US evaluation called the “high dimensionality” of morbidity. This paper explores one approach to addressing the “high dimensionality” challenge in health valuation, using one stated preference survey to elicit WTP for multiple types of illness.

We present results from a U.S. population survey of willingness to pay to reduce risk of eleven serious short-term complications and long-term chronic outcomes of infectious illnesses. The short-term complications include hospitalization for diarrhea/dehydration, hospitalization with bloody diarrhea, sepsis, appendectomy, and short-term kidney impairment (HUS). The longer-term or chronic health outcomes include irritable bowel syndrome (IBS), Guillan-Barré syndrome (GBS), reactive arthritis, permanent kidney failure (End Stage Renal Disease or ESRD), permanent vision impairment, and chronic outcomes from meningitis. We estimate a double bounded probit model that allows us to generatd by employment status and race. We find that respondents are sensitive to the cost of reducing risk, and the level of risk reduction. We also report estie estimates of WTP to reduce the risk of experiencing these health outcomes, moderatemates of the value of a statistical case. These range from $0.86m to $1.46 million depending on the severity of the disease.

This paper investigates how positive and negative affective states influence stated preferences for public environmental goods, with implications for welfare analysis and policy evaluation. Using a discrete choice experiment on alternative waste management systems in Italy, we examine how positive and negative affect experienced at the time of preference elicitation shapes individuals’ willingness to pay and the consistency of their choices. Affective states are measured using the Positive and Negative Affect Schedule (PANAS) immediately prior to the choice tasks, capturing a generalized blend of both momentary (state) and dispositional (trait) affect.

Preferences are modelled through a heteroskedastic hybrid discrete choice framework that integrates positive and negative affect as latent variables in both the utility function and the scale parameter, allowing us to assess the effects on preference structure and choice randomness. Results show that higher negative affect is associated with lower willingness to pay for environmentally cooperative and effort-intensive attributes, such as additional waste sorting categories and textile collection. In contrast, higher positive affect reduces preference for the status quo and increases support for more sustainable waste management systems. Moreover, for both positive and negative affect, greater affective intensity leads to increased choice randomness, indicating reduced decision consistency.

These findings challenge standard assumptions of stable and context-independent preferences underlying stated preference methods. They highlight positive and negative affect as significant sources of heterogeneity and uncertainty in environmental valuation, with substantial implications for cost–benefit analysis and the design and timing of environmental policies. 

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.

While numerous studies have analysed the public acceptability of the carbon tax, surprisingly, little is known about citizens’ preferences for the EU Emissions Trading System for buildings, road transport, and small industry (ETS2). The paper examines the public acceptability of the ETS2 and willingness to pay for its attributes using data from nationwide representative surveys conducted in three EU Member States (the Czech Republic, Spain, and Sweden). In total, 4,917 respondents were interviewed via online access panels in 2024. The findings suggest that public acceptability of the new ETS2 can be increased by allocating revenues from the sale of emission allowances according to citizen preferences. The revenue use options are categorised into support for green projects, vulnerable groups, and other governmental policies. Popular green initiatives include renewable energy and energy savings, while support for vulnerable groups favours vouchers and income support. Preferences of inhabitants of the three countries vary in using revenues for public policies, with differing opinions on defence, health, and nuclear energy. Perceived environmental effectiveness, costs, and personal benefits from the ETS2 affect public support. Preferences are notably shaped by individual eligibility for benefits, especially vouchers and discounts, which are the most favoured option among those who feel they are eligible. People who feel they will suffer or struggle are more likely to choose the 'no new ETS2' option or opt out and are opposed to more stringent emission reduction policies. The outcomes of this research provide policymakers with insights into the most widely accepted policy package(s) and offer useful information for the debate over the design of the Social Climate Fund.