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Validity of Health Benefit Transfer between Malaysia and Bangladesh

Rafia Afroz, Mohd Nasir Hassan, Muhamad Awang, Noor Akma Ibrahimk

Abstract


The objectives of this study are to evaluate the validity of contingent valuation method (CVM) and the validity of transferring contingent valuation estimates from a developing to a least developing country. To evaluate the impact of additional information on the willingness to pay (WTP) of the respondents to avoid the ill health episodes due to air pollution, different sub samples were presented with contingent valuation scenarios offering different levels of information. One sub-sample was given the cause of ill health episodes and the policy to be implemented to remedy the cause of the ill health episodes (context version). Another sub sample was asked to value the avoidance of episodes of ill health, but was not given any details of the cause of the episodes nor the policy that would be implemented to remedy the cause of ill health episodes (non-context version). The study has found that the CVM estimates are internally valid in both context and non-context versions since the WTP values of the respondents to avoid the ill-health episodes due to air pollution increase with the increase in some socio-economic and health variables such as income, education, asthma attack and duration of ill health episodes. After this survey, a similar non-context survey was conducted in Bangladesh and the validity of transferring WTP estimates was evaluated.

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