Paired comparison and contingent valuation approaches to morbidity risk valuation

Abstract This research uses an experimental approach for eliciting consumer valuations of morbidity risk reductions associated with safter chemical products and introduces the paired comparison questions approach to non-market valuation. In four applications, the paired comparisons approach yields higher morbidity valuations than the more familiar contingent valuation approach. However, both methodologies produce large values of morbidity reduction benefits in comparison to estimates derived from wage hedonic studies. Explanations for the difference in the estimates and their magnitudes are suggested along with the public policy implications.