THE VALUE OF RISK - FREE CIGARETTES - DO SMOKERS UNDERESTIMATE THE RISK?

Henrik Hammar and Olof Johansson-Stenman ()

No 61, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: The health risk of smoking is valued using the contingent valuation method, applied to a Swedish sample of smokers. The respondents were asked to put a value on newly developed cigarettes with no associated health risks. The average additional willingness to pay for the new cigarettes is estimated to be between10 and 41 SEK per packet. Using medical data on life shortening effects of smoking, the results indicate fairly reasonable values put on a lost life year, compared to existing estimates based on other methods. However, there are remaining methodological questions and we found little sensitivity to scope.

Keywords: cigarette consumption; value of life year; contingent valuation (search for similar items in EconPapers)
JEL-codes: I18 J17 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2001-11-30
New Economics Papers: this item is included in nep-hea, nep-ias and nep-mic
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Citations: View citations in EconPapers (8)

Published in Health Economics, 2004, pages 59-71.

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Related works:
Journal Article: The value of risk‐free cigarettes – do smokers underestimate the risk? (2004)
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