Private values of risk tradeoffs at superfund sites: Housing market evidence on learning about risk

• 成果类型: Article
• 署名作者: Gayer, T; Hamilton, JT; Viscusi, WK
• 署名单位: Georgetown University; University of California System; University of California Berkeley; Duke University; Harvard University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/003465300558939
• 发表日期: 2000-08
• 页码: 439-451
• 关键词: hedonic price models; cleanup decisions; implicit markets; waste sites; benefits; demand

摘要

This paper incorporates a Bayesian learning model into a hedonic framework to estimate the value that residents place on avoiding cancer risks from hazardous-waste sites. We show that residents are willing to pay to avoid cancer risks from Superfund sites before the U.S. Environmental Protection Agency (EPA) releases its assessment (known as the Remedial Investigation) of the site. Residents' willingness to pay to avoid risks actually decreases after the release of the Remedial Investigation, suggesting that the information lowers the perceived levels of risk. This estimated willingness to pay implies a statistical value of cancer similar to the value-of-life estimates in labor market studies.