Contingent Valuation Analysis of Willingness to Pay to Reduce Childhood Obesity

39 Pages Posted: 19 Sep 2006 Last revised: 8 Sep 2022

See all articles by John Cawley

John Cawley

Cornell University - College of Human Ecology, Department of Policy Analysis & Management (PAM); Cornell University - College of Arts & Sciences, Department of Economics; Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); University of Galway - J.E. Cairnes School of Business & Economics; NBER; IZA

Date Written: September 2006

Abstract

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.

Suggested Citation

Cawley, John, Contingent Valuation Analysis of Willingness to Pay to Reduce Childhood Obesity (September 2006). NBER Working Paper No. w12510, Available at SSRN: https://ssrn.com/abstract=930329

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