Household decision-making and valuation of environmental health risks to parents and their children

W. Adamowicz, M. Dickie, S. Gerking, M. Veronesi, D. Zinner

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper empirically discriminates between household decision-making models for estimating parents’ willingness to pay for health risk reductions for their children and for themselves. Models are tested using data from a stated preference survey involving 432 matched pairs of married parents. Analysis builds on a collective model of resource allocation that incorporates household production of perceived health risks and allows for differences in preferences and risk perceptions between parents. Results are consistent with Pareto efficiency within the household. Thus, for a given proportionate reduction in health risk, (1) parents are willing to pay equal amounts at the margin to protect themselves and the child and (2) parents’ choices for their children are based on household valuations, rather than individual valuations. The marginal willingness to pay of mothers and fathers for health risk protection appears insensitive to shifts in their relative contributions to the household budget.
Original languageEnglish
Pages (from-to)481-519
JournalJournal of the Association of Environmental and Resource Economists
Volume1
Issue number4
DOIs
Publication statusPublished - Dec 2014

Fingerprint

environmental risk
valuation
health risk
decision making
willingness to pay
risk perception
resource allocation
household
environmental health
Household decision making
Environmental health
Health risk
Household
Willingness-to-pay

Keywords

  • collective household model
  • environmental health risk to parents and children
  • household decision making
  • matched sample of mothers and fathers
  • noncooperative household model
  • Pareto efficiency
  • unitary household model
  • willingness to pay

Cite this

@article{158ac7a7b1b243489072cd8228533bac,
title = "Household decision-making and valuation of environmental health risks to parents and their children",
abstract = "This paper empirically discriminates between household decision-making models for estimating parents’ willingness to pay for health risk reductions for their children and for themselves. Models are tested using data from a stated preference survey involving 432 matched pairs of married parents. Analysis builds on a collective model of resource allocation that incorporates household production of perceived health risks and allows for differences in preferences and risk perceptions between parents. Results are consistent with Pareto efficiency within the household. Thus, for a given proportionate reduction in health risk, (1) parents are willing to pay equal amounts at the margin to protect themselves and the child and (2) parents’ choices for their children are based on household valuations, rather than individual valuations. The marginal willingness to pay of mothers and fathers for health risk protection appears insensitive to shifts in their relative contributions to the household budget.",
keywords = "collective household model, environmental health risk to parents and children, household decision making, matched sample of mothers and fathers, noncooperative household model, Pareto efficiency, unitary household model, willingness to pay",
author = "W. Adamowicz and M. Dickie and S. Gerking and M. Veronesi and D. Zinner",
year = "2014",
month = "12",
doi = "10.1086/679255",
language = "English",
volume = "1",
pages = "481--519",
journal = "Journal of the Association of Environmental and Resource Economics",
issn = "2333-5955",
publisher = "University of Chicago Press",
number = "4",

}

Household decision-making and valuation of environmental health risks to parents and their children. / Adamowicz, W.; Dickie, M.; Gerking, S.; Veronesi, M.; Zinner, D.

In: Journal of the Association of Environmental and Resource Economists, Vol. 1, No. 4, 12.2014, p. 481-519.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Household decision-making and valuation of environmental health risks to parents and their children

AU - Adamowicz, W.

AU - Dickie, M.

AU - Gerking, S.

AU - Veronesi, M.

AU - Zinner, D.

PY - 2014/12

Y1 - 2014/12

N2 - This paper empirically discriminates between household decision-making models for estimating parents’ willingness to pay for health risk reductions for their children and for themselves. Models are tested using data from a stated preference survey involving 432 matched pairs of married parents. Analysis builds on a collective model of resource allocation that incorporates household production of perceived health risks and allows for differences in preferences and risk perceptions between parents. Results are consistent with Pareto efficiency within the household. Thus, for a given proportionate reduction in health risk, (1) parents are willing to pay equal amounts at the margin to protect themselves and the child and (2) parents’ choices for their children are based on household valuations, rather than individual valuations. The marginal willingness to pay of mothers and fathers for health risk protection appears insensitive to shifts in their relative contributions to the household budget.

AB - This paper empirically discriminates between household decision-making models for estimating parents’ willingness to pay for health risk reductions for their children and for themselves. Models are tested using data from a stated preference survey involving 432 matched pairs of married parents. Analysis builds on a collective model of resource allocation that incorporates household production of perceived health risks and allows for differences in preferences and risk perceptions between parents. Results are consistent with Pareto efficiency within the household. Thus, for a given proportionate reduction in health risk, (1) parents are willing to pay equal amounts at the margin to protect themselves and the child and (2) parents’ choices for their children are based on household valuations, rather than individual valuations. The marginal willingness to pay of mothers and fathers for health risk protection appears insensitive to shifts in their relative contributions to the household budget.

KW - collective household model

KW - environmental health risk to parents and children

KW - household decision making

KW - matched sample of mothers and fathers

KW - noncooperative household model

KW - Pareto efficiency

KW - unitary household model

KW - willingness to pay

U2 - 10.1086/679255

DO - 10.1086/679255

M3 - Article

VL - 1

SP - 481

EP - 519

JO - Journal of the Association of Environmental and Resource Economics

JF - Journal of the Association of Environmental and Resource Economics

SN - 2333-5955

IS - 4

ER -