Willingness to pay

The EPS enviro-accounting method, version and the previous version, estimates the willingness to pay (WTP) of OECD inhabitants in EURO for avoiding changes in five safeguard subjects ... 

The Tellus method" is also based on the willingness to pay, but in this case the WTP concerns cleaning equipment. The highest cleaning cost per mass unit of an emission is used to represent society s WTP for not emitting that substance. 

Farhar, B. C., and Houston, A. (1996, October). Willingness to Pay for Electricity from Renewable Energy . National Renewable Energy Laboratory, NRELfFP-461-20S13. Gardner, G. T., and Stern, P. C. (1996). Environmental Problems and Human Behavior. Englewood Cliffs, NJ Allyn Bacon. 

Hammlt, J. K. Estimating Consumer Willingness to Pay to Reduce Food-Borne Risk Rand Corporation Santa Monica, CA, 1986. 

Kotchen M, Kallaos J, Wheeler K, Wong C, Zahller M (2009) Pharmaceuticals in wastewater behavior, preferences, and willingness to pay for a disposal program. J Environ Manage 90 1476-1482... 

Hanvelt et al. (1994) estimated the nationwide indirect costs of mortality due to HIV/AIDS in Canada. A descriptive, population-based economic evaluation study was conducted. Data from Statistics Canada were used, which contained information about aU men aged 25-64 years for whom HIV/AIDS or another selected disease was listed as the underlying cause of death from 1987 to 1991. Based on the human capital approach, the present value of future earnings lost for men was calculated. The estimated total loss from 1987 to 1991 was US 2.11 billion, with an average cost of US 558,000 per death associated with HIV/AIDS. Future production loss due to HIV/AIDS was more than double during the period 1987 to 1991, from US 0.27 to US 0.60 billion. A more comprehensive update of this smdy was presented by Hanvelt et al. (1996). The same database and the same data section but for the calendar years 1987-1993 was used. The indirect cost of future production due to HIV/AIDS in Canada based on the human capital approach for that period was estimated to be US 3.28 billion. The authors also calculated the willingness-to-pay to prevent premature death due to HIV/AIDS, which was estimated based on... 

Gertler P, Van der Gaag J (1990) The willingness to pay for medical care. The World Bank, WA... 

FFealey AT, Ghisholm DFF (1999). Willingness-to-pay methods in mental health care. /Ment Health Policy Econ 2, 55—8. 

First, a distinction must be drawn between prescribed drugs and self-prescribed drugs, a distinction which is important for two reasons. The first has to do with consumer sovereignty. Only the demand for self-prescribed drugs expresses the patient s freely decided willingness to pay. In the other case, it is prescribing doctors who initiate the demand, and they may not be perfect agents for their patients, either because they are subject to certain... 

In order to associate a number to represent the utility of these four outcomes we have to choose between several types of economic evaluations, basically between cost-effectiveness analysis, cost-utility analysis and cost-benefit analysis. The first of these is ruled out because it measures the health outcome in natural units. Given that the side effects of drags are of a varied nature, we need to be able to aggregate the different seriousness of these side effects in order to obtain a single utility, at least for the NSEA event. Furthermore, this utility must be comparable with that of, for example, the SER event. This is not possible with cost-effectivity. If we chose cost-utility, the utility associated with each event would be measured in QALYs gained or lost in each option. As QALYs are a universal measure of health benefit, cost-utility analysis could be appropriate for this type of decision. Lastly, cost-benefit analysis would also be appropriate, as it measures the utilities associated with each outcome in monetary terms, which reflect the willingness to pay for one of the outcomes in terms of safety and effectiveness. 

Let us suppose that the population attaches a constant value to gains of identical health units, in this case QALYs. This means that the sacrifice, in terms of utility, that they are willing to make to gain a QALY is constant. However, the willingness to pay for each additional QALY is decreasing, as a result of the decreasing marginal utility of income. 

Table 6.9 European consumers willingness to pay for organic food...

A market can only develop when the increased safety of chemical prodncts is recompensed by an actual willingness to pay. Private and professional chemical users only become concerned with the health and environment-related qnalities of a product (quality awareness) when they are informed effectively. Specialised journals and television news play an important role in this area. 

Farhar BC, Ashley FH (1996) Willingness to pay for electricity from renewable energy. National Renewable Energy Laboratory, Golden Colorado... 

Patents are widely used to provide incentives for R D investment (Cohen and Merrill 2003 deLaat 1997 Gallini and Scotchmer 2002 Maurer and Scotchmer 2004 Merrill, Levin, and Myers 2004). The patent system has some important advantages. First, the market values the benefits from new products. Surrogate measures of willingness to pay can be quite inaccurate. Second, it is unnecessary to specify characteristics of the product to be... 

TABLE 5.15 Consumer purchasing characteristics and willingness to pay for morama bean-processed products in Botswana, South Africa and Namibia (adapted from Jordaan et al. (2009))... 

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