TY - JOUR
AU - Cawley,John
TI - Contingent Valuation Analysis of Willingness to Pay To Reduce Childhood Obesity
JF - National Bureau of Economic Research Working Paper Series
VL - No. 12510
PY - 2006
Y2 - September 2006
UR - http://www.nber.org/papers/w12510
L1 - http://www.nber.org/papers/w12510.pdf
N1 - Author contact info:
John Cawley
3M24 MVR Hall
Department of Policy Analysis and Management
and Department of Economics
Cornell University
Ithaca, NY 14853
Tel: 607/255-0952
Fax: 607/255-4071
E-Mail: jhc38@cornell.edu
AB - Several recent surveys have asked Americans whether they support policies to reduce childhood obesity. There is reason for skepticism of such surveys because people are not confronted with the tax costs of such policies when they are asked whether they support them. This paper uses contingent valuation (CV), a method frequently used to estimate people’s willingness to pay (WTP) for goods or services not transacted in markets, applied to unique survey data from New York State to estimate the willingness to pay to reduce childhood obesity.
The willingness to pay data correlate in predictable ways with respondent characteristics. The mean WTP for a 50% reduction in childhood obesity is $46.41 (95% CI: $33.45, $59.15), which implies a total WTP by New York State residents of $690.6 million (95% CI: $497.7, $880.15), which is less than that implied by previous surveys that did not use CV methods but greater than current spending on policies to reduce childhood obesity and greater than the estimated savings in external costs. The findings provide policymakers with useful information about taxpayers' support for, and preferred budget for, anti-obesity policies.
ER -