Willingness to pay for low-lung-cancer-risk cigarettes in Taiwan.
This study develops a conceptual framework based on the random utility model to estimate smokers' willingness to pay (WTP) for the hypothetical low-lung-cancer-risk cigarettes in Taiwan. Following the approach taken by Viscusi (J Polit Econ 1990; 98: 1253-1269), an individual's subjective risk perception on the probability of developing lung cancer from smoking cigarettes was measured and used in the estimation of demand for safer cigarettes. Other factors that may affect a smoker's purchase decision toward the hypothetically safer cigarettes are also identified. The average WTP for one pack of low-lung-cancer-risk cigarettes is estimated to be 44.15 NT dollars, which represents a 152% price increase over the average price of cigarettes currently sold in the market.
Jan
Man-Ser
MS
Economics Department, Chinese Culture University, Taipei, Taiwan, ROC. mjan@faculty.pccu.edu.tw
Fu
Tsu-Tan
TT
Huang
Chung L
CL
D000328:Adult; D001294:Attitude to Health; D003257:Consumer Product Safety; D003657:Decision Making; D005260:Female; D005382:Financing, Personal / Q000706:statistics & numerical data*; D006801:Humans; D007407:Interviews as Topic; D008175:Lung Neoplasms / Q000209:etiology*; D008297:Male; D008875:Middle Aged; D008962:Models, Theoretical; D012907:Smoking / Q000191:economics*; D013624:Taiwan