Comparative Mixed Risk Aversion: Definition and Application to Self-Protection and Willingness to Pay

Journal of Risk and Uncertainty ◽

10.1023/b:risk.0000046146.97495.9e ◽

2004 ◽

Vol 29 (3) ◽

pp. 261-276 ◽

Cited By ~ 37

Author(s):

Kaïs Dachraoui ◽

Georges Dionne ◽

Louis Eeckhoudt ◽

Philippe Godfroid

Keyword(s):

Willingness To Pay ◽

Risk Aversion ◽

Mixed Risk Aversion ◽

Self Protection

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The Benefit-Cost Ratio as a Decision Criteria When Managing Catastrophes

Environmental and Resource Economics ◽

10.1007/s10640-020-00498-x ◽

2020 ◽

Vol 77 (2) ◽

pp. 345-363

Author(s):

Kine Josefine Aurland-Bredesen

Keyword(s):

Relative Risk ◽

Willingness To Pay ◽

Risk Aversion ◽

Optimal Policy ◽

Cost Ratio ◽

Relative Risk Aversion ◽

Decision Criteria ◽

Benefit Cost Ratio ◽

The Individual ◽

Benefit Cost

Abstract Previous work has shown that when projects are non-marginal, it creates an interdependence among projects. This implies that policies to manage catastrophes should not be evaluated in isolation but in conjunction with each other. As long as relative risk aversion is sufficiently high, the benefits of averting one catastrophe depend positively on the background risk created by other catastrophes. This specific bias makes it possible to create upper and lower boundaries on the willingness to pay to manage catastrophes and the optimal policy. These boundaries can be used to make inferences on which catastrophes should be averted and not, and in which order. The upper and lower boundaries depend only on the individual catastrophe’s benefit-cost ratio and the coefficient of risk aversion, which both are easy to identify using standard economic frameworks.

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Mixed Risk Aversion

Journal of Economic Theory ◽

10.1006/jeth.1996.0130 ◽

1996 ◽

Vol 71 (2) ◽

pp. 485-513 ◽

Cited By ~ 141

Author(s):

Jordi Caballé ◽

Alexey Pomansky

Keyword(s):

Risk Aversion ◽

Mixed Risk Aversion

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Risk Perception on Haze Pollution and Willingness to Pay for Self-Protection and Haze Management in Chiang Mai Province, Northern Thailand

Atmosphere ◽

10.3390/atmos11060600 ◽

2020 ◽

Vol 11 (6) ◽

pp. 600

Author(s):

Sukanya Sereenonchai ◽

Noppol Arunrat ◽

Duangporn Kamnoonwatana

Keyword(s):

Risk Perception ◽

Willingness To Pay ◽

Rural Areas ◽

Contingent Valuation Method ◽

Influential Factors ◽

Chiang Mai ◽

Northern Thailand ◽

Haze Pollution ◽

Chiang Mai Province ◽

Self Protection

Air pollution is an important environmental health risk that affects people worldwide, including those in the Chiang Mai Province, Northern Thailand. A questionnaire survey based on accidental sampling to explore risk perception and willingness to pay (WTP) for self-protection and haze management was conducted via face-to-face interview of 250 households, in one urban and four rural areas (covering one rural plain and three different levels of highland areas). Data were analyzed using the contingent valuation method, a one-way ANOVA, correlation, and stepwise multiple linear regression. Key findings on risk perception found that urban respondents living in the lowest areas were more familiar with and experienced more effects from serious haze, while having the least trust in the local authority’s management to cope with the situation. Influential factors determining familiarity and effect for people in most areas were their harm and severe haze experiences. Comparing WTP for a mask, an air purifier, and local authorities support, respondents in all areas were mainly willing to pay for a mask; this was influenced by various factors. The highest average price of willingness to pay was found in the urban area. The important significant factors that increased WTP for self-protection of urban respondents was severe haze experience, while rural respondents who had a longer stay duration, including married farmers in highland areas with less education, tended to have less WTP for self-protection but more WTP for haze management. Avoiding crop residue burning is the first strategy that should be used to deal with haze pollution. Early burning schedules of the highland people should be formally announced, and prompt risk communication should be implemented by local and central authorities and media practitioners.

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