Can a Circular Payment Card Format Effectively Elicit Preferences? Evidence From a Survey on a Mandatory Health Insurance Scheme in TunisiaJournal articleOlivier Chanel, Khaled Makhloufi and Mohammad Abu-Zaineh, Applied Health Economics and Health Policy, Volume 15, Issue 3, pp. 385-398, 2017

The choice of elicitation format is a crucial but tricky aspect of stated preferences surveys. It affects not only the quantity and quality of the information collected on respondents’ willingness to pay (WTP) but also the potential errors/biases that prevent their true WTP from being observed.

We propose a new elicitation mechanism, the circular payment card (CPC), and show that it helps overcome the drawbacks of the standard payment card (PC) format. It uses a visual pie chart representation without start or end points: respondents spin the circular card in any direction until they find the section that best matches their true WTP.

We performed a contingent valuation survey regarding a mandatory health insurance scheme in Tunisia, a middle-income country. Respondents were randomly allocated into one of three subgroups and their WTP was elicited using one of three formats: open-ended (OE), standard PC and the new CPC. We compared the elicited WTP.

We found significant differences in unconditional and conditional analyses. Our empirical results consistently indicated that the OE and standard PC formats led to significantly lower WTP than the CPC format.

Overall, our results are encouraging and suggest CPC could be an effective alternative format to elicit ‘true’ WTP.

Impacts sanitaires et socio-économiques de la pollution de l’air : leçons d’une approche globale dans le secteur des transportsJournal articleOlivier Chanel, Environnement, Risques & Santé, Volume 16, Issue 4, pp. 381-387, 2017

Dans le secteur des transports, les émissions de gaz à effet de serre (GES) et de polluants atmosphériques locaux (PAL) sont analysées de manière indépendante non seulement lors de la fixation des normes d’émissions, mais également dans l’analyse économique. Puisqu’elles ont la même origine (le pétrole), nous proposons d’étudier les conséquences de leur traitement joint sur le choix d’une politique de transport. Dans un premier temps, nous mettons en évidence les relations existant entre les impacts sanitaires et socio-économiques associés à ces deux sources de pollution, et rappelons les modalités de leur évaluation monétaire. Nous établissons ensuite que la politique de transport à privilégier, lorsque les GES et les PAL sont pris en compte conjointement avec leurs incertitudes et irréversibilités respectives, favorise la diminution du transport privé motorisé. Nous discutons enfin les implications pratiques de ce résultat en matière de choix sociétaux.

Exploring the Role of Emotions in Decisions Involving Catastrophic Risks: Lessons from a Double InvestigationBook chapterOlivier Chanel, Graciela Chichilnisky, Sébastien Massoni and Jean-Christophe Vergnaud, In: The Economics of the Global Environment, Graciela Chichilnisky and Armon Rezai (Eds.), 2016, Volume 29, pp. 553-575, Springer, Cham, 2016

Natural disasters due to climate change (like floods, hurricanes, heat waves or droughts) combine a risk of large losses and a low probability of occurrence, requiring decisions to be made in uncertain universes. However, the inability of standard decision under uncertainty models to provide rankings when some outcomes are catastrophic impedes rational (public) decision-making. This paper examines the role of emotions in individuals’ choices among alternatives involving catastrophic events, either in real life (flooding) or artificial (laboratory experiment) situations. We report a survey on 599 respondents aimed at determining how people exposed to different levels of flood risk form beliefs and make decisions under uncertainty before and after emotion-generating events. Data on their emotions, the emotions they expect to experience, their personality and psychological determinants, their symptoms before and after emotion-generating events are collected and analyzed. In parallel with this survey, experimental protocols replicate the emotional experience of a catastrophe and measure its impact on behavior and formation of beliefs. Emotions are induced by framing effects and measured through a self-declared worry scale. We collect behavioral data (insurance choice, subjective beliefs, performance) and measure how they are affected by the emotions felt during the decision-making. These protocols test some assumptions in the survey using experimental paradigms from psychophysics that allow us to control the sources of uncertainty experienced by the subjects. Results confirm that emotions connected with the nature of the risk can significantly affect desire to reduce it. The survey provides valuable material for comparative analysis, revealing how actual experience of an anticipated event affects decisions. The experiments show that emotions affect the decision-making process and the forming of probabilistic beliefs.

The hidden economic burden of air pollution-related morbidity: evidence from the Aphekom projectJournal articleOlivier Chanel, Laura Perez, Nino Künzli and Sylvia Medina, The European Journal of Health Economics, Volume 17, Issue 9, pp. 1101-1115, 2016

Public decision-makers commonly use health impact assessments (HIA) to quantify the impacts of various regulation policies. However, standard HIAs do not consider that chronic diseases (CDs) can be both caused and exacerbated by a common factor, and generally focus on exacerbations. As an illustration, exposure to near road traffic-related pollution (NRTP) may affect the onset of CDs, and general ambient or urban background air pollution (BP) may exacerbate these CDs. We propose a comprehensive HIA that explicitly accounts for both the acute effects and the long-term effects, making it possible to compute the overall burden of disease attributable to air pollution. A case study applies the two HIA methods to two CDs—asthma in children and coronary heart disease (CHD) in adults over 65—for ten European cities, totaling 1.89 million 0–17-year-old children and 1.85 million adults aged 65 and over. We compare the current health effects with those that might, hypothetically, be obtained if exposure to NRTP was equally low for those living close to busy roads as it is for those living farther away, and if annual mean concentrations of both PM10 and NO2—taken as markers of general urban air pollution—were no higher than 20 μg/m3. Returning an assessment of € 0.55 million (95 % CI 0–0.95), the HIA based on acute effects alone accounts for only about 6.2 % of the annual hospitalization burden computed with the comprehensive method [€ 8.81 million (95 % CI 3–14.4)], and for about 0.15 % of the overall economic burden of air pollution-related CDs [€ 370 million (95 % CI 106–592)]. Morbidity effects thus impact the health system more directly and strongly than previously believed. These findings may clarify the full extent of benefits from any public health or environmental policy involving CDs due to and exacerbated by a common factor.

Combining discourse analyses to enrich theory: The case of local land-use policies in South Eastern FranceJournal articleLaurence Delattre, Olivier Chanel, Cecile Livenais and Claude Napoléone, Ecological Economics, Volume 113, Issue C, pp. 60-75, 2015

Local land-use policies are determined by a wide range of considerations that do not always favor open-space preservation. To identify them, a field study was undertaken in South Eastern France via semi-directive interviews with people responsible for municipal land-use policies. We use it to compare a qualitative (i.e. manual) discourse analysis with two quantitative (i.e. computer-assisted) analyses and combine them to identify the drivers of land-use policies, especially with regard to urban sprawl. Performing all three analyses allows us to switch back and forth between a local empirical approach and large-scale modeling and methods. This should enrich micro-economic models by clarifying more complex local features, like unbalanced relationships with neighboring municipalities or why “agriculture” should be considered as an independent interest group.

Quelques clarifications sur l’évaluation monétaire des effets sanitaires relatifs à la pollution atmosphériqueJournal articleOlivier Chanel, Mathilde Pascal, Sylvia Medina and Pascal Beaudeau, Environnement, Risques & Santé, Volume 14, Issue 5, pp. 431-434, 2015

L'évaluation des impacts sanitaires et économiques de la pollution atmosphérique constitue un enjeu majeur pour la population et pour les décideurs. Impliqués de longue date dans ce domaine, nous ne pouvons que nous féliciter de la parution de l'article de Rafenberg et al. (2015). II contribue en effet à la prise en compte de la morbidité chronique dans l'évaluation économique des effets de la pollution atmosphérique, une voie que le projet Aphekom avait également exploré par d'autres approches. Il nous a pourtant semblé nécessaire de clarifier un certain nombre de points relatifs à cette publication. Nous commencerons par évoquer les questions de méthodes. Nous aborderons ensuite la présentation et l'interprétation de certaines études discutées dans Rafenberg et al. (2015), car la présence d'erreurs relativise la portée de certains points de la discussion de cet article.

Monetary values for risk of death from air pollution exposure: a context-dependent scenario with a control for intra-familial altruismJournal articleOlivier Chanel and Stéphane Luchini, Journal of Environmental Economics and Policy, Volume 3, Issue 1, pp. 67-91, 2014

We extend the individual dynamic model of lifetime resource allocation to assess the monetary value given to the increase in survival probabilities for every member of a household induced by improved air quality. We interpret this monetary value as VPF (value of a prevented fatality), which can also be expressed as a flow of discounted VOLY (value of life years) lost, and account for potential altruism towards other household members. We use a French air pollution contingent valuation survey that provides a description of the life-length reduction implied by a change in air pollution exposure. By privatising the public commodity air pollution, we succeed in ruling out any form of altruism (towards others living today and towards future generations) except altruism towards one's family. We estimate a mean VOLY of € 2001 140,000, a 30% premium for VOLY in perfect health w.r.t. average expected health status, and a mean VPF of € 2001 1.45 million for the respondent, all context-specific. In addition, we find an inverted U-shaped relationship between his/her age and VOLY/VPF, and significant benevolence only towards children under 18.

Willingness to pay of committed citizens: A field experimentJournal articleDominique Ami, Frédéric Aprahamian, Olivier Chanel, Robert-Vincent Joule and Stéphane Luchini, Ecological Economics, Volume 105, Issue C, pp. 31-39, 2014

In this paper, we propose a behavioral approach to determine the extent to which the consumer/citizen distinction affects interpretations of monetary values in stated preferences methods. We perform a field experiment dealing with air pollution, where some (randomly selected) subjects are given the opportunity to behave politically by signing a petition for environmental protection prior to stating their private preferences in a standard contingent valuation exercise. We show that signing has the potential to influence respondents' willingness to pay values. Results indicate that even market-like situations are not immune to citizen behavior.

Determinants of Local Public Policies for Farmland Preservation and Urban Expansion: A French IllustrationJournal articleOlivier Chanel, Laurence Delattre and Claude Napoléone, Land Economics, Volume 90, Issue 3, pp. 411-433, 2014

We outline the determinants of local public policies for farmland preservation and urban expansion. We first rely on the literature and on a purposely designed field study of municipalities in southern France to propose a theoretical framework better suited to the French situation. The model considers aspects of land consumption, includes two interest groups as well as the median voter, and is then econometrically tested. We confirm the expected effects of certain sociodemographic determinants and highlight the impact of municipal budgetary considerations and the role of the agricultural sector. We also find more counterintuitive determinants, like local political regime or unbalanced neighboring relationships.

Economic valuation of the mortality benefits of a regulation on SO2 in 20 European citiesJournal articleOlivier Chanel, Susann Henschel, Patrick G. Goodman, Antonis Analitis, Richard Atkinson, Alain Le Tertre, Ariana Zeka and S. Medina, European Journal of Public Health, Volume 24, Issue 4, pp. 631-637, 2014

Since the 1970s, legislation has led to progress in tackling several air pollutants. We quantify the annual monetary benefits resulting from reductions in mortality from the year 2000 onwards following the implementation of three European Commission regulations to reduce the sulphur content in liquid fuels for vehicles. We first compute premature deaths attributable to these implementations for 20 European cities in the Aphekom project by using a two-stage health impact assessment method. We then justify our choice to only consider mortality effects as short-term effects. We rely on European studies when selecting the central value of a life-year estimate (€2005 86 600) used to compute the monetary benefits for each of the cities. We also conduct an independent sensitivity analysis as well as an integrated uncertainty analysis that simultaneously accounts for uncertainties concerning epidemiology and economic valuation. Results: The implementation of these regulations is estimated to have postponed 2212 (95% confidence interval: 772–3663) deaths per year attributable to reductions in sulphur dioxide for the 20 European cities, from the year 2000 onwards. We obtained annual mortality benefits related to the implementation of the European regulation on sulphur dioxide of €2005 191.6 million (95% confidence interval: €2005 66.9–€2005 317.2). Conclusion: Our approach is conservative in restricting to mortality effects and to short-term benefits only, thus only providing the lower-bound estimate. Our findings underline the health and monetary benefits to be obtained from implementing effective European policies on air pollution and ensuring compliance with them over time.