Willingness to pay to avoid arsenic-related risks: a special regressor approach

Thierry Kalisa, Mary Riddel and W. Shaw

Journal of Environmental Economics and Policy, 2016, vol. 5, issue 2, 143-162

Abstract: Subjective probabilities often better explain behaviours than science-based risks. Incorporating them into a behavioural model has important ramifications for environmental and health policy, but if these risks are measured with error or endogenous, then doing so leads to possible troubles in interpretation of results. Our application is to mortality risks associated with arsenic found in drinking water in various spots in the United States. The behaviour of interest is a yes/no response to a willingness to pay (WTP) question to reduce these risks. We apply the special regressor approach to handle the endogeneity and measurement error in the WTP model and find that doing so leads to different implications for policy that could be pursued to reduce the risks.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/21606544.2015.1057871 (text/html)
Access to full text is restricted to subscribers.

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:taf:teepxx:v:5:y:2016:i:2:p:143-162

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/teep20

DOI: 10.1080/21606544.2015.1057871

Access Statistics for this article

Journal of Environmental Economics and Policy is currently edited by Ken Willis

More articles in Journal of Environmental Economics and Policy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().