scholarly journals Improving Drinking Water Quality in South Korea: A Choice Experiment with Hypothetical Bias Treatments

Water ◽  
2020 ◽  
Vol 12 (9) ◽  
pp. 2569
Author(s):  
Adelina Gschwandtner ◽  
Cheul Jang ◽  
Richard McManus
Keyword(s):  
South Korea ◽  
Choice Experiment ◽  
Latent Class ◽  
Cost Benefit Analysis ◽  
Stated Preference ◽  
Cost Benefit ◽  
Hypothetical Bias ◽  
Sensitivity Analyses ◽  
The Difference ◽  
Water Treatments

The objective of this present study is to use choice experiments and an extensive cost-benefit analysis (CBA) to investigate the feasibility of installing two advanced water treatments in Cheongju waterworks in South Korea. The study uses latent class attribute non-attendance models in a choice experiment setting in order to estimate the benefits of the two water treatments. Moreover, it explores strategies to mitigate potential hypothetical bias as this has been the strongest criticism brought to stated preference methods to date. Hypothetical bias is the difference between what people state in a survey they would be willing to pay and what they would actually pay in a real situation. The study employs cheap talk with a budget constraint reminder and honesty priming with the latter showing more evidence of reducing potential hypothetical bias. The lower bound of the median WTP (willingness to pay) for installing a new advanced water treatment system is approximately $2 US/month, similar to the average expenditures for bottled water per household in South Korea. These lower bounds were found using bootstrapping and simulations. The CBA shows that one of the two treatments, granular activated carbon is more robust to sensitivity analyses, making this the recommendation of the study.

scholarly journals Modelling the impact of rapid diagnostic tests on Plasmodium vivax malaria in South Korea: a cost–benefit analysis

2021 ◽  
Vol 6 (2) ◽  
pp. e004292
Author(s):  
Jung Ho Kim ◽  
Jiyeon Suh ◽  
Woon Ji Lee ◽  
Heun Choi ◽  
Jong-Dae Kim ◽  
...  
Keyword(s):  
South Korea ◽  
Plasmodium Vivax ◽  
Diagnostic Tests ◽  
Cost Benefit Analysis ◽  
Malaria Incidence ◽  
Cost Benefit ◽  
Medical Costs ◽  
Rapid Diagnostic Tests ◽  
Benefit Analysis ◽  
The Impact

BackgroundRapid diagnostic tests (RDTs) are widely used for diagnosing Plasmodium vivax malaria, especially in resource-limited countries. However, the impact of RDTs on P. vivax malaria incidence and national medical costs has not been evaluated. We assessed the impact of RDT implementation on P. vivax malaria incidence and overall medical expenditures in South Korea and performed a cost–benefit analysis from the payer’s perspective.MethodsWe developed a dynamic compartmental model for P. vivax malaria transmission in South Korea using delay differential equations. Long latency and seasonality were incorporated into the model, which was calibrated to civilian malaria incidences during 2014–2018. We then estimated averted malaria cases and total medical costs from two diagnostic scenarios: microscopy only and both microscopy and RDTs. Medical costs were extracted based on data from a hospital in an at-risk area for P. vivax malaria and were validated using Health Insurance Review and Assessment Service data. We conducted a cost–benefit analysis of RDTs using the incremental benefit:cost ratio (IBCR) considering only medical costs and performed a probabilistic sensitivity analysis to reflect the uncertainties of model parameters, costs and benefits.ResultsThe results showed that 55.3% of new P. vivax malaria cases were averted, and $696 214 in medical costs was saved over 10 years after RDT introduction. The estimated IBCR was 2.5, indicating that RDT implementation was beneficial, compared with microscopy alone. The IBCR was sensitive to the diagnosis time reduction, infectious period and short latency period, and provided beneficial results in a benefit over $10.6 or RDT cost under $39.7.ConclusionsThe model simulation suggested that RDTs could significantly reduce P. vivax malaria incidence and medical costs. Moreover, cost–benefit analysis demonstrated that the introduction of RDTs was beneficial over microscopy alone. These results support the need for widespread adoption of RDTs.

A Cost-Benefit Analysis for Extraction of Atmospheric Water by Direct Cooling in South Korea

2021 ◽  
Vol 29 (2) ◽  
pp. 31-58
Author(s):  
Fatemeh Yektaie ◽  
Byung Seol Byun
Keyword(s):  
South Korea ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Atmospheric Water

Cost–benefit analysis for applied public health economic evaluation

2019 ◽  
pp. 204-232 ◽  
Author(s):  
Emma McIntosh ◽  
Camilla Baba ◽  
Willings Botha
Keyword(s):  
Public Health ◽  
Economic Evaluation ◽  
Cost Benefit Analysis ◽  
Stated Preference ◽  
Health Economic Evaluation ◽  
Public Health Intervention ◽  
Cost Benefit ◽  
Health Interventions ◽  
Benefit Analysis ◽  
Process Outcomes

Chapter 9 introduces the reader to the stages of cost–benefit analysis (CBA) as specifically applied to public health intervention economic evaluation. The specific focus of this chapter follows on from the messages of Chapter 6 on the relevance of, and methods for, quantifying the ‘outcomes’ of public health interventions in monetary form for CBA. Two case studies focus on the use of stated preference discrete choice experiment (SPDCE) methodology for valuation of multi-attribute benefits comprising health, non-health, and process outcomes of the type likely to occur in PHIs.

Cost–benefit and water resources policy: a survey

Water Policy ◽  
2011 ◽  
Vol 14 (2) ◽  
pp. 250-280 ◽  
Author(s):  
Frank A. Ward
Keyword(s):  
Water Policy ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Trade Offs ◽  
Wide Range ◽  
Recent Developments ◽  
The Difference ◽  
Policy Cost ◽  
The Right

This paper reviews recent developments in cost–benefit analysis for water policy researchers who wish to understand the applications of economic principles to inform emerging water policy debates. The cost–benefit framework can provide a comparison of total economic gains and losses resulting from a proposed water policy. Cost–benefit analysis can provide decision-makers with a comparison of the impacts of two or more water policy options using methods that are grounded in time-tested economic principles. Economic efficiency, measured as the difference between added benefits and added costs, can inform water managers and the public of the economic impacts of water programs to address peace, development, health, the environment, climate and poverty. Faced by limited resources, cost–benefit analysis can inform policy choices by summarizing trade-offs involved in designing, applying, or reviewing a wide range of water programs. The data required to conduct a cost–benefit analysis are often poor but the steps needed to carry out that analysis require posing the right questions.

Investigating demand for biofortified seeds in developing countries

2015 ◽  
Vol 5 (1) ◽  
pp. 24-43 ◽  
Author(s):  
Ekin Birol ◽  
Dorene Asare-Marfo ◽  
Bhushana Karandikar ◽  
Devesh Roy ◽  
Michael Tedla Diressie
Keyword(s):  
Developing Countries ◽  
Pearl Millet ◽  
Choice Experiment ◽  
Latent Class ◽  
Stated Preference ◽  
Significant Heterogeneity ◽  
Content Type ◽  
High Iron ◽  
First Choice ◽  
Experiment Method

Purpose – The purpose of this paper is to explore farmer acceptance of a biofortified staple food crop in a developing country prior to its commercialization. The paper focuses on the hypothetical introduction of a high-iron pearl millet variety in Maharashtra, India, where pearl millet is among the most important staple crops. Design/methodology/approach – A choice experiment is used to investigate farmer preferences for and trade-offs among various production and consumption attributes of pearl millet. The key pearl millet attributes studied include days it takes pearl millet to mature, color of the roti (flat bread) the grain produces, the presence of high-iron content (nutritional attribute), and the price of the pearl millet seed. Choice data come from 630 pearl millet-producing households from three purposefully selected districts of Maharashtra. A latent class model is used to investigate the heterogeneity in farmers’ preferences for pearl millet attributes and to profile farmers who are more or less likely to choose high-iron varieties of pearl millet. Findings – The results reveal that there are three distinct segments in the sample, and there is significant heterogeneity in farmer preferences across these segments. High-iron pearl millet is valued the most by larger households that produce mainly for household consumption and currently have lower quality diets. Households that mainly produce for market sales, on the other hand, derive lower benefits from consumption characteristics such as color and nutrition. Research limitations/implications – The main limitation of the study is that it uses a stated preference choice experiment method, which suffers from hypothetical bias. At the time of implementing this study biofortified high-iron pearl millet varieties were not yet developed, therefore the authors could not have implemented revealed preference elicitation methods with real products and payment. Originality/value – The method used (stated preference choice experiment method) is commonly used to value non-market goods such as environmental goods and products that are not yet in the market. It’s application to agriculture and in developing countries is increasing. As far as the authors know this is the first choice experiment implemented to investigate farmer/consumer preferences for biofortified crops. The study presents valuable information for development and delivery of biofortified crops for reducing micronutrient deficiencies.

scholarly journals Preprint: Mobility surveys beyond stated preference: Introducing MyTrips, an SP-off-RP survey tool, and results of two case studies

2021 ◽  
Author(s):  
Christian Rudloff ◽  
Markus Straub
Keyword(s):  
Case Studies ◽  
Latent Class ◽  
Stated Preference ◽  
Hypothetical Bias ◽  
Rural Setting ◽  
Daily Routine ◽  
Actual Behavior ◽  
Survey Tool ◽  
First Case

When introducing new mobility offers or measures to influence traffic, stated preference (SP) surveys are often used to assess their impact. In SP surveys respondents do not answer questions about their actual behavior but about hypothetical settings. Therefore, answers are often biased. To minimise this hypothetical bias, so-called stated preference-off-revealed preference (SP-off-RP)surveys were developed. They base SP questions on respondents’ revealedbehavior and place unknown scenarios in a familiar context. Until now this method was applied mostly to scenarios investigating the willingness to pay. The application to more complex mode or route choice problems, which require the calculation of routes, has not yet been done. In this paper, the MyTrips survey tool for the collection of SP-off-RP data based on respondents’ actual mobility behavior is presented. SP questions are based on alternatives to typical routes of respondents, which are calculated on the fly with an intermodal router. MyTrips includes a larger survey and collectsmobility diaries for one day representing respondents’ daily routine, calculates alternative routes and creates SP questions based on a Bayesian optimal design. Results from two case studies investigating behavior changes are presented. The first case study investigated the extension of a subway line in Vienna,Austria. The second case study focused on the introduction of micro transit vehicles in a rural setting, replacing infrequent bus services. Results of the two case studies show a difference in response behaviour between SP and RP settings and suggest a reduction of hypothetical bias. For the latter study a Latent Class SP-off-RP model was estimated. It shows that availability and accessibility of public transport are the main influence on the willingness to use it independent of other household characteristics.

scholarly journals A social-economic-engineering combined framework for decision making in water resources planning

2008 ◽  
Vol 5 (5) ◽  
pp. 2817-2857
Author(s):  
E. S. Chung ◽  
K. S. Lee
Keyword(s):  
Decision Making ◽  
Choice Experiment ◽  
Social Economic ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Specific Information ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Management Objectives ◽  
Water Quality Deterioration

Abstract. This study presents a new methodology not only to evaluate willingness to pays (WTPs) for the improvement of hydrological vulnerability using a choice experiment (CE) method but also to do a cost-benefit analysis (CBA) of some feasible alternatives combing the derived WTPs with an alternative evaluation index (AEI). The hydrological vulnerability consists of potential streamflow depletion (PSD), and potential water quality deterioration (PWQD) and can be quantified using a multi-criteria decision making technique and pressure-state-response (PSR) framework. PSD and PWQD not only provide survey respondents with sufficient site-specific information to avoid scope sensitivity in a choice experiment but also support the standard of dividing the study watershed into six sub-regions for site-fitted management. Therefore CE was applied to six regions one after the other, in order to determine WTPs for improvements on hydrological vulnerability considering the characteristics which are vulnerability, location, and preferences with regard to management objectives. The AEI was developed to prioritize the feasible alternatives using a continuous water quantity/quality simulation model as well as multi-criteria decision making techniques. All criteria for alternative performance were selected based on a driver-pressures-state-impact-response (DPSIR) framework, and their weights were estimated using an Analytic Hierarchy Process (AHP). In addition, the AEI that reflects on residents' preference with regard to management objectives was proposed in order to incite the stakeholder to participate in the decision making process. Finally, the economic values of each alternative are estimated by a newly developed method which combines the WTPs for improvements on hydrologic vulnerability with the AEI. This social-economic-engineering combined framework can provide the decision makers with more specific information as well as decrease the uncertainty of the CBA.

scholarly journals Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

2017 ◽  
Vol 5 (2) ◽  
pp. 28-40
Author(s):  
Björn Sund
Keyword(s):  
Cardiac Arrest ◽  
Willingness To Pay ◽  
Cause Of Death ◽  
Road Traffic ◽  
Cost Benefit Analysis ◽  
Stated Preference ◽  
Cost Benefit ◽  
Transport Sector ◽  
Benefit Analysis ◽  
Hospital Cardiac Arrest

Economic evaluation of policies regarding out-of-hospital cardiac arrest (OHCA) is important. The value of a statistical life (VSL) for OHCA victims is the most important component in a cost-benefit analysis of interventions that have the possibility to reduce mortality from this cause. This value is not known. We use responses to a national Swedish mail survey, based on the stated-preference technique to directly elicit individuals’ hypothetical willingness to pay for a reduced risk of dying from OHCA. A lower-bound estimate of VSL for OHCA would be in range of SEK 30 to 50 million. The value is found to be higher than for comparable VSL estimates from the transport sector, even though individuals who suffer OHCAs are generally older and less healthy than people who die in road traffic accidents. The results indicate that it is not an overestimation to use the ‘baseline’ VSL value from the transport sector (SEK 24 million) in cost-benefit analysis of OHCA policy decisions and that the cause of death is important when examining willingness to pay for death risk reductions. We do not support a general declining VSL due to the age of the victims, i.e. a ‘senior death discount’, for this cause of death.Published: Online January 2017. In print December 2017.

scholarly journals The German value of time and value of reliability study: the survey work

2019 ◽  
Vol 47 (3) ◽  
pp. 1477-1513 ◽  
Author(s):  
Ilka Dubernet ◽  
Kay W. Axhausen
Keyword(s):  
Cost Benefit Analysis ◽  
Stated Preference ◽  
Survey Design ◽  
Revealed Preference ◽  
Cost Benefit ◽  
Joint Estimation ◽  
Transport Infrastructure ◽  
Large Sample Size ◽  
Residential Location Choice ◽  
Stated Preference Survey

Abstract In 2012 Germany’s Federal Ministry of Transport and Digital Infrastructure (BMVI) initiated several projects in preparation of the new Federal Transport Infrastructure Plan (BVWP) 2030. This included an update of the general methodology and in particular of its cost–benefit analysis which is used to evaluate the effects of hundreds of German infrastructure projects under study. As part of the work the first official values of time (VOT) and values of reliability (VOR) for personal and business travel for Germany derived from a stated preference survey were estimated. From May 2012 until January 2013 nationwide data of more than 3000 participants was collected in a combined two-stage revealed and stated preference survey. This paper discusses the survey design, reports experience of the field phase and analyses the response behaviour of the sample. The stated choice experiments address mode, route, time of departure, workplace and residential location choice. The complex multi-attribute experiments of different types cover various aspects of short and long-term travel choice attributes which the respondent has to take into consideration during his decision process. Furthermore overlapping variables of the stated and revealed preference experiments enabled a joint estimation of the whole data for deriving the VOTs and VORs. Additionally numerous socio-demographic and attitudinal questions plus the large sample size for business and non-business trips make it a unique dataset offering various aspects of travel behaviour and their valuations to explore.

Videos Improve Attention and Cheap Talk in Online Surveys

2021 ◽  
Vol 16 (2) ◽  
pp. 347-376
Author(s):  
Jerrod Penn ◽  
◽  
Wuyang Hu ◽  
Keyword(s):  
Willingness To Pay ◽  
Choice Experiment ◽  
Stated Preference ◽  
Cheap Talk ◽  
Hypothetical Bias ◽  
Control Group ◽  
Online Surveys ◽  
Participant Engagement ◽  
Reducing Potential

Cheap Talk (CT) is a mainstay technique among stated preference practitioners to reduce Hypothetical Bias (HB). The usefulness of CT may be questionable in online surveys due to the limited control researchers have on participant engagement. In the context of an online choice experiment on hotels, we compare a control group of respondents who receives a CT script as a traditional passage of text versus a group who must answer an attention-check question to verify their comprehension of the script as well as another group who receives the CT script as a video and then answer the attention-check question. We find that compared to the control group, simply offering the attention-check question reduced willingness to pay (WTP), and those who answer the attention-check question correctly behaved differently to those who did not. Overall, video CT script is shown to improve attention and be more effective in reducing potential HB than a text-based script.

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