Valuation when baselines are changing: Tick-borne disease risk and recreational choice

Daniel Slunge, Thomas Sterner and Wiktor Adamowicz

Resource and Energy Economics, 2019, vol. 58, issue C

Abstract: Understanding how changes in baseline risk influence preferences for risk reduction is important when valuing the welfare effects of environmental change, including the spread of disease. We conduct a survey-based choice experiment among respondents residing in areas with different prevalence of ticks and incidence of Lyme borreliosis (LB) and tick-borne encephalitis (TBE) in Sweden. Respondents face a trade-off between risk and travel cost when choosing between visiting recreational areas differing in prevalence of ticks and disease incidence. Our study indicates that the presence of ticks and the associated risk of tick-borne diseases significantly influence the choice of recreational area and have substantial welfare effects. The mean willingness to pay (WTP) per trip to avoid areas with different levels of ticks, LB risk and TBE risk ranges from 12 to 78 EUR. The WTP for risk reduction is significantly lower among respondents residing in risk areas compared to respondents in emerging risk areas. Explanations for these differences in WTP for risk reduction between groups with different baseline risks include differences in reference point utility, knowledge and learning, leading to adaptation of behaviour and preferences.

Keywords: Baseline risk; Stated preferences; Climate change; Ticks; Lyme borreliosis; Tick-borne encephalitis (search for similar items in EconPapers)
JEL-codes: D61 I12 Q51 Q54 Q57 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0928765518303981
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:58:y:2019:i:c:s0928765518303981

DOI: 10.1016/j.reseneeco.2019.101119

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().