Estimating value of statistical life (VSL) is an important input to many benefit-cost analysis (BCA) approaches, but for many low- and middle-income countries, there are limited or no data estimating VSL. Current guidance relies on extrapolation of results from high-income settings, which may be unreliable, leading to low confidence applying VSL. During 2019, we surveyed 1,820 low-income individuals (average consumption per capita USD329) across four diverse regions in Ghana and Kenya, to inform recommendations about effective spending in the development sector. We elicited VSL using a stated-preference approach, capturing the willingness-to-pay to reduce the risk of death for themselves and their children. Additionally, we conducted multiple “policy choice experiments” (PCEs) in which we asked respondents to choose, from the perspective of a decision-maker, between programs that save lives of different ages, and save lives and provide cash transfers. VSL estimates for this population fell in the range of USD66,795–USD90,453 (PPP-adjusted). We found similar results in the PCE but uncovered much stronger preferences for saving younger lives. Overall, our results suggest that VSL in low-income countries may be higher than estimates based on extrapolations from wealthy countries and that within these communities, policymakers should place more weight on saving the lives of young children. We also explore methodological learnings about how to apply and collect data for BCA in particularly low-income, low-education settings. We find that through careful training and gatekeeping, it is feasible to elicit complicated preferences in this population, and both approaches have their benefits and drawbacks.

Facing increasing nonrenewable and environmental concerns with fossil power generation, renewable energy is being supported by government mechanisms. With the power generation cost of renewables generally higher than fossil fuels, determining the optimal level of these mechanisms requires an understanding of households’ prosocial behavior toward renewables. The issue is determining the magnitude households are willing to pay (WTP) for alternative renewables. Our hypothesis is this behavior varies by the type of renewable energy. As a test of this hypothesis, we apply a discrete choice experiment to measure households’ WTP. Results support our hypothesis with a positive WTP for solar energy, leading to a 62% reduction in solar subsidy, and a negative WTP for biomass and wind sources.

Theoretical equivalence exists among various auction mechanisms, specifically the Second-Price-Auction (SPA), a competitive environment, and the BDM mechanism, a non-competitive environment. Yet, empirical studies suggest that behavior in these mechanisms may diverge. Our experimental study examines the WTP and the WTA of individuals by analyzing buying and selling bidding patterns both for a physical product (mugs) and for two types of lotteries (regular lotteries and extreme lotteries) in these two auctions mechanism: SPA and BDM. We found that the WTP in the SPA is higher than the WTP in the BDM for mugs and for regular lotteries, while the mechanisms do not differ significantly for extreme lotteries. In addition, the WTA in the SPA is lower than in the BDM for regular lotteries only. These results indicate that the WTP and WTA, as well as the WTA-WTP gap, tend to differ in the SPA and in the BDM as a result of the interaction between the competitiveness effect and other psychological effects on bidding patterns for riskless and risky assets. In addition, the current study suggests that the competitiveness effect depends not only on the type of mechanism (SPA), but also on the type of item (physical assets or lotteries) and the type of lottery. In addition, the influence of the competitiveness effect may vary between buying and selling positions.

The Florida orange juice industry has experienced great challenges—declining orange juice consumption and a domestic supply shortage that has led to increasing imports over the past decade. As growers look for a foothold, the question remains whether it is better to continue promoting orange juice (OJ) sales by focusing on the Florida “brand” or whether orange juice, in general, should be promoted using a federal marketing program. This study aims to identify the value of promoting “Florida” on OJ products to help the industry understand the potential benefits of enhancing the image of “Florida” in consumers’ perceptions of OJ.

The U.S. and global beer industries include a great many smaller-scale craft breweries supplying numerous differentiated products as well as a few macro-breweries with less diverse beer portfolios. The craft and macro segments of this industry have become quite distinct, with little substitutability between the two types of beer. Furthermore, since the early 2000s the craft segment has realized consistent growth whereas large breweries have seen a steady decline in sales. Macro-breweries have responded by acquiring smaller breweries to capture a share of the craft market. This study implements an experimental approach to measure consumers’ willingness to pay (WTP) for locally produced and independently owned beer. Regression analysis clearly indicates that consumers prefer locally owned and independently produced beer, and how much they are willing to pay for those attributes. (JEL Classifications: D12, L66)

We investigate heterogeneous consumer preferences and willingness to pay (WTP) for various sweet cherry attributes using choice experiments. A mixed logit model and a latent-class logit model are used to estimate consumer WTP for the attributes and identify groups of consumers based on those preferences. We find that consumers of sweet cherries will pay the greatest premium for sweetness and the smallest premium for fruit size. Three groups of consumers are identified—flavor sensitive, price sensitive, and storage sensitive. The results are useful for suppliers of sweet cherries when adopting targeted marketing strategies.

This study compares an ordered probit model and a Tobit model with selection to take into account both true zero and protest zero bids while estimating the willingness to pay (WTP) for conservation easements in Macon County, NC. By comparing the two models, the ordered/unordered selection issue of the protest responses is analyzed to demonstrate how the treatment of protest responses can significantly influence WTP models. Both models consistently show that income and knowledge are positive and significant factors, while distance to poorer quality streams and duration of residency are negative and significant factors on WTP.