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    The Effect of Risk Communication on Choice Behavior, Welfare Estimates and Choice Certainty2016

    BROUWER R., LOGAR I.Journaux et Revues (scientifiques)

    pollution, incertitudes / biais, analyse conjointe / dichotomique, santé

    Water Resources and Economics
    Available online 1 December 2016

    • We value reductions in environmental and human health risks due to micropollutants
    • Choice experiments are applied in split samples, with and without a risk ladder
    • We test the effect of risk ladder on choices, welfare measures and choice certainty
    • The risk ladder affects choice behaviour, but not choice certainty
    • The use of the risk ladder significantly lowers welfare estimates

    In stated preference research focusing on the elicitation of willingness to pay for reducing environmental or health risks, it is of crucial importance how risk is communicated to survey respondents. This study applies a split-sample approach to examine the effect of using a risk ladder on choice behavior, welfare estimates and choice certainty in a stated discrete choice experiment. It values the improvement of water quality in Switzerland in terms of the reduction in environmental and public health risks that would result from implementing new wastewater treatment technologies that substantially reduce micropollutant discharges into water bodies. Results show that the risk ladder significantly influences respondents’ choice behavior and welfare estimates. The findings concerning the effect of a risk ladder on choice certainty are mixed. We also find evidence of preference learning.

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