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Book part

Mark Dickie and Matthew J. Salois

The chapter investigates: (1) Do married parents efficiently allocate time to children’s health care? (2) Are parents willing to sacrifice consumption for health…

Abstract

Purpose

The chapter investigates: (1) Do married parents efficiently allocate time to children’s health care? (2) Are parents willing to sacrifice consumption for health improvements at an equal rate for all family members? (3) How does family structure affect health trade-offs parents make? (4) Are parental choices consistent with maximization of a single utility function?

Methodology

A model is specified focusing on how parents allocate resources between consumption and goods that relieve acute illnesses for family members. Equivalent surplus functions measuring parental willingness to pay to relieve acute illnesses are estimated using data from a stated-preference survey.

Findings

Results provide limited support for the prediction that married parents allocate time to child health care according to comparative advantage. Valuations of avoided illness vary between family members and are inconsistent with the hypothesis that fathers’ and mothers’ choices reflect a common utility function.

Research implications

Prior research on children’s health valuation has relied on a unitary framework that is rejected here. Valuation researchers have focused on allocation of resources between parents and children while ignoring allocation of resources among children, whereas results suggest significant heterogeneity in valuation of health of different types of children and of children in different types of households.

Social implications

Results may provide a justification on efficiency grounds for policies to provide special protection for children’s health and suggest that benefit–cost analyses of policies affecting health should include separate estimates of the benefits of health improvements for children and adults.

Details

Preference Measurement in Health
Type: Book
ISBN: 978-1-78441-029-2

Keywords

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Book part

V. Kerry Smith, Carol Mansfield and Aaron Strong

This chapter reports estimates of consumers’ preferences for plans to improve food safety.

Abstract

Purpose

This chapter reports estimates of consumers’ preferences for plans to improve food safety.

Design/methodology/approach

The plans are distinguished based on whether they address the ex ante risk of food borne illness or the ex post effects of the illness. They are also distinguished based on whether they focus on a public good – reducing risk of illness for all consumers or allowing individual households to reduce their private risks of contracting a food borne pathogen.

Findings

Based on a National Survey conducted in 2007 using the Knowledge Network internet panel, our findings indicate consumers favor ex ante risk reductions and are willing to pay approximately $250 annually to reduce the risk of food borne illness. Moreover, they prefer private to public approaches and would not support efforts to reduce the severity of cases of illness over risk reductions.

Originality/value

This study is the first research that allows a comparison of survey respondents’ choices between public and private mechanisms for ex ante risk reductions.

Details

Preference Measurement in Health
Type: Book
ISBN: 978-1-78441-029-2

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Article

Daniel Leufkens

For a long time the European geographical indication (GI) regulation has been of great interest to economists and policymakers. To justify exclusive European regulation it…

Abstract

Purpose

For a long time the European geographical indication (GI) regulation has been of great interest to economists and policymakers. To justify exclusive European regulation it is necessary to prove the positive value of a GI quality signal (i.e. label), which is often achieved by quantifying its monetary value for the consumers. But even though a large number of literary contributions already deal with this question, they lack the evaluation of overall effect sizes for the GI label. The purpose of this paper is, therefore, to quantify and evaluate the overall marginal consumer willingness to pay for the European GI label.

Design/methodology/approach

To reach this aim, a meta-analysis is used for which a literature survey had been carried out in order to determine the GI label effects (LEs). In addition to previous works, this paper not only includes a meta-analysis, but also implements a heterogeneity analysis to distinguish between the LEs of individual GI standards. To eliminate study- and product-specific determinants of heterogeneity, moderator variables are used.

Findings

The empirical results indicate that consumers have a highly significant and positive marginal willingness to pay for GIs. However, the marginal willingness to pay differs significantly between the individual GI standards and indicates great heterogeneity between the protected products.

Originality/value

As an extension to previous studies and meta-analysis; this paper includes the most extensive GIs meta-data set so far, and conducts for the first time an independent heterogeneity analysis to distinguish between the LEs of individual GI standards and implements a moderator analysis to eliminate study- and product-specific determinants of heterogeneity from the GI effects.

Details

British Food Journal, vol. 120 no. 12
Type: Research Article
ISSN: 0007-070X

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Book part

Neil Bruce and Robert Halvorsen

One of the most contentious issues concerning benefit–cost analyses of environmental and other regulatory programs has been the valuation of reductions in mortality risks…

Abstract

One of the most contentious issues concerning benefit–cost analyses of environmental and other regulatory programs has been the valuation of reductions in mortality risks. The conceptual basis for most valuation exercises has been the value of a statistical life (VSL). However, despite decades of both theoretical and empirical research on the meaning and measurement of the VSL concept, there is no consensus concerning the validity of the results it produces in actual applications. In this paper, we review the development and application of the VSL approach and then propose what we believe to be a better way to value changes in mortality hazard.

Details

Research in Law and Economics
Type: Book
ISBN: 978-1-84950-455-3

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Article

Rodrigo R. Soares

Negative effects of crime encompass several different dimensions. As a result, there is no existing methodology capable of dealing with all the relevant issues…

Abstract

Purpose

Negative effects of crime encompass several different dimensions. As a result, there is no existing methodology capable of dealing with all the relevant issues simultaneously and the interpretation of the estimates currently available lacks theoretical foundation. The purpose of this paper is to provide a unified view of the meaning and relationship between the various dimensions of the welfare cost of crime and violence available in the literature.

Design/methodology/approach

The paper develops a theoretical model of crime and illustrates the different interpretations of welfare costs of crime and violence within this unified framework. This theoretical benchmark is then used as a benchmark to review the empirical literature on the topic.

Findings

The analysis suggests that the most commonly estimated dimension of the welfare cost of crime − related to the total loss associated with crime − although relevant as an illustrative tool, is not very useful from a policy perspective. The literature should therefore move closer to the idea of estimating marginal costs and benefits in order to become policy relevant.

Research limitations/implications

Policy-oriented research related to optimal law enforcement should move in the direction of estimating the marginal willingness to pay of individuals for reductions in crime. This should be compared to the marginal cost of alternative policies in order to guide public policy in the area.

Originality/value

This survey rationalizes in economic terms the estimates from the existing methodologies, highlights some of their limitations, and points out potential directions for future research. It provides one of the first unified views of the various dimensions of welfare cost of crime and violence that have been presented in the literature.

Details

Journal of Economic Studies, vol. 42 no. 1
Type: Research Article
ISSN: 0144-3585

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Article

Walid Marrouch and Nagham Sayour

This study aims to examine the impact of local air pollution on housing prices in Lebanon.

Abstract

Purpose

This study aims to examine the impact of local air pollution on housing prices in Lebanon.

Design/methodology/approach

The authors apply a hedonic pricing approach using a unique data set from Lebanon. To account for non-linearities in pricing, the authors use three different functional regression forms for the hedonic model approach. The authors also deal with potential omitted variable bias by estimating a hedonic frontier specification.

Findings

The authors find that, in all specifications, air pollution negatively and significantly affects housing prices. The estimated marginal willingness to pay for a one microgram per cubic meter change in particulate matter (PM10) concentration ranges between 2.88% and 3.18% of mean housing prices. The authors also provide evidence of a negative pricing gradient away from the city center, landing support for the monocentric urban development hypothesis.

Research limitations/implications

Given the lack of a data set linking household socioeconomic characteristics with housing data, the authors only consider the first-stage hedonic model.

Practical implications

The proposed hedonic pricing regression approximates a housing pricing equation that can be used by policymakers.

Social implications

The findings suggest that pollution is a significant factor in household behavior in Lebanon.

Originality/value

This paper adds to the scant literature studying the effects of air pollution on housing prices in developing countries. To the best of the authors’ knowledge, this is the first paper to study the impact of pollution on housing prices in a country in the Middle East and North Africa Region.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

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Article

Simone Mueller Loose and Hervé Remaud

The study seeks to assess the impact of two different corporate social responsibility (CSR) claims, relating to social and environmental dimensions, on consumers' wine…

Abstract

Purpose

The study seeks to assess the impact of two different corporate social responsibility (CSR) claims, relating to social and environmental dimensions, on consumers' wine choice across international markets. It analyses how point of purchase CSR claims compete with other food claims and their awareness, penetration and consumers' trust are examined.

Design/methodology/approach

A discrete choice experiment with a visual shelf simulation was used to elicit consumer preferences and to estimate marginal willingness to pay for CSR and other food claims across the UK, France, Germany, the US East Coast, the US Midwest, and Anglophone and Francophone Canada.

Findings

CSR claims relating to social and environmental responsibility have a similar awareness, penetration and consumer trust, but differ in their impact on consumer choice, where environmental corporate responsibility claims benefit from a higher marginal willingness to pay. Consumer valuation of CSR claims significantly differs across international markets, but is consistently lower than for organic claims.

Originality/value

This is the first cross‐national study that analyses the impact of CSR claims on consumer food choice relative to other food claims using large representative consumer samples. The strength of the paper also pertains to the utilisation of innovative choice experiments covering a large range of choice relevant product attributes.

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Book part

David A. Hensher

It has long been recognised that humans draw from a large pool of processing aids to help manage the everyday challenges of life. It is not uncommon to observe individuals…

Abstract

It has long been recognised that humans draw from a large pool of processing aids to help manage the everyday challenges of life. It is not uncommon to observe individuals adopting simplifying strategies when faced with ever increasing amounts of information to process, and especially for decisions where the chosen outcome will have a very marginal impact on their well-being. The transactions costs associated with processing all new information often exceed the benefits from such a comprehensive review. The accumulating life experiences of individuals are also often brought to bear as reference points to assist in selectively evaluating information placed in front of them. These features of human processing and cognition are not new to the broad literature on judgment and decision-making, where heuristics are offered up as deliberative analytic procedures intentionally designed to simplify choice. What is surprising is the limited recognition of heuristics that individuals use to process the attributes in stated choice experiments. In this paper we present a case for a utility-based framework within which some appealing processing strategies are embedded (without the aid of supplementary self-stated intentions), as well as models conditioned on self-stated intentions represented as single items of process advice, and illustrate the implications on willingness to pay for travel time savings of embedding each heuristic in the choice process. Given the controversy surrounding the reliability of self-stated intentions, we introduce a framework in which mixtures of process advice embedded within a belief function might be used in future empirical studies to condition choice, as a way of increasingly judging the strength of the evidence.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

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Abstract

Details

Urban Dynamics and Growth: Advances in Urban Economics
Type: Book
ISBN: 978-0-44451-481-3

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Article

Brano Glumac and Thomas P. Wissink

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling…

Abstract

Purpose

This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is relatively unknown. Considering that expected lifespan of photovoltaic systems is at least 25 years, it is likely that many dwellings with a photovoltaic system will enter the housing market.

Design/methodology/approach

Few houses with installed photovoltaic systems have been sold in the market to date. Lack of real market data imposes a method based on the stated preference data. Therefore, the general preferences toward photovoltaic systems are determined by a discrete choice model based on responses of 227 homebuyers in the Eindhoven region, The Netherlands. Further, the model estimates were used to assess the indirect willingness to pay for home photovoltaic systems. This initial willingness to pay is further reassessed with the direct willingness to pay collected in an open-ended questionnaire format.

Findings

Results of the model show that the homebuyers’ preferences for home photovoltaic systems are large and significant. In addition to general preferences, this article reports on the taste heterogeneity carried out by separating observations based on the respondents’ characteristics. For example, photovoltaic systems are more appealing to homebuyers in more urban or central neighbourhoods. Further, the results of the direct survey lead to the conclusion that people are probably willing to pay close to the replacement value of the system and only 22 per cent of all respondents did not want to pay anything for the installed photovoltaic system.

Research limitations/implications

These findings are exploratory and they raise a number of questions for further investigations, such as those regarding the real estate value of the installed photovoltaic systems. The reported findings must be regarded as local, thus further research is necessary to understand the impact on European housing markets.

Practical implications

Preferences and willingness to pay for home photovoltaic systems can provide a variety of economic, social and political recommendations to different interested parties such as homeowners, buyers, realtors, retailers, energy companies and governments. For instance, a homeowner would like to know what would be the effect of a photovoltaic system on the housing market.

Originality/value

As per the knowledge of authors, this is the first paper to estimate the impact of an installed photovoltaic system on housing choice, measured by stated choice data in the local housing market. It expands the existing body of knowledge for increasingly important issues of valuing and measuring preferences for photovoltaic systems installed on dwellings.

Details

Journal of European Real Estate Research, vol. 11 no. 1
Type: Research Article
ISSN: 1753-9269

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