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Valuation of cancer and microbial disease risk reductions in municipal drinking water: An analysis of risk context using multiple valuation methods
Authors:Wiktor Adamowicz  Diane DupontAlan Krupnick  Jing Zhang
Institution:a Department of Rural Economy, University of Alberta, Edmonton, Alberta, Canada T6G 2H1
b Department of Economics, Brock University, St. Catharines, Ontario, Canada L2S 3A1
c Senior Fellow and Director of Research, Resources for the Future, 1616 P Street NW, Washington, DC 20036-1400, USA
d Department of Bioresource Policy, Business & Economics, University of Saskatchewan, Saskatoon, Saskatchewan, Canada S7N 5A8
Abstract:We examine the value of health risk reductions (microbial illnesses/deaths and bladder cancer illnesses/deaths) in the context of drinking water quality treatment by public systems. When we assume that combined mortality and morbidity risk reductions are equally spread in the future; our results suggest that microbial risk-reduction programs have higher value than cancer risk-reduction programs, but that mortality risk reduction values are not significantly different for cancer and microbials. However, when a 25-year cancer latency is accounted for and a 5% discount rate is used, the value of cancer mortality risk reductions exceeds the value for microbial risk reductions. We also address a number of methodological issues, including performance of alternative choice experiment estimation (CE) techniques, relationship of CE to contingent valuation results, and implications for incorporating morbidity and mortality endpoints in the same survey instrument.
Keywords:Microbial risks  Cancer risks  Mortality risk  Morbidity risk  Risk context  Public health risks  Value of statistical life  Municipal drinking water
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