Willingness to pay for COVID-19 environmental health risk reductions in consumption: Evidence from U.S. professional sports

Brad Humphreys, Gary A. Wagner, John Whitehead and Pamela Widcker

No 21-05, Working Papers from Department of Economics, Appalachian State University

Abstract: The COVID-19 pandemic caused substantial economic changes. The airborne transmission of the coronavirus increased the environmental health risks associated with many activities that entailed little risk in the pre-pandemic period, including workplace risks and risks faced by consumers. While a large literature estimates local tradeoffs between money and reduced risk of negative health outcomes in many settings, little empirical evidence addresses consumer willingness to pay for reduction in environmental health risks associated with coronavirus transmission. We estimate professional sports fans’ willingness to pay (WTP) for reduced likelihood of coronavirus infection through mask and social distancing policies at games using a stated preference approach. Regression results based on a latent class logit model using survey data collected from 1,391 fans of professional sports teams in five large U.S. metropolitan areas indicate increased attendance likelihood if the venue requires masks and limits attendance to below capacity. Latent class logit models indicate significant heterogeneity in WTP across risk scenarios and sports. We characterize the types of professional sports fan as casual fans who prefer a mask requirement but are indifferent to stadium and arena capacity, rabid fans who are anti-maskers and indifferent to capacity and fans who only have a positive WTP when there is a mask requirement and low stadium/arena capacity (i.e., opportunities for the greatest amount of social distancing). Key Words: Discrete choice experiment; Stated preferences; Willingness-to-pay; Environmental health risk

New Economics Papers: this item is included in nep-dcm, nep-env, nep-hea and nep-spo
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