Valuing Reductions in Environmental Risks to Children's Health

Posted: 11 Oct 2013

See all articles by Shelby Gerking

Shelby Gerking

University of Central Florida - College of Business Administration - Department of Economics

Mark Dickie

University of Central Florida - College of Business Administration - Department of Economics

Date Written: June 2013

Abstract

This article reviews the economics literature dealing with valuation of reduced environmental risks to children’s health. We describe conceptual models together with results from a number of empirical studies. The conceptual models analyze valuation issues from the perspective of parents; treat health risk as endogenously determined; and demonstrate that in equilibrium, marginal willingness to pay to reduce risk for the child relative to marginal willingness to pay to reduce risk for the parent should equal the ratio of marginal risk reduction costs. Empirical studies treat both mortality and morbidity associated with exposure to environmental health risks. These studies generally find that parents are willing to pay more for absolute risk reductions for their children than they are willing to pay for corresponding risk reductions for themselves. Possible reasons for this outcome along with suggestions for further research are discussed.

Suggested Citation

Gerking, Shelby and Dickie, Mark, Valuing Reductions in Environmental Risks to Children's Health (June 2013). Annual Review of Resource Economics, Vol. 5, Issue 1, pp. 245-260, 2013, Available at SSRN: https://ssrn.com/abstract=2339093 or http://dx.doi.org/10.1146/annurev-resource-091912-151940

Shelby Gerking (Contact Author)

University of Central Florida - College of Business Administration - Department of Economics ( email )

Orlando, FL 32816-1400
United States

Mark Dickie

University of Central Florida - College of Business Administration - Department of Economics ( email )

Orlando, FL 32816-1400
United States

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