This paper uses data from the 1991 National Maternal and Infant Health Survey to estimate propositions derived from a model
of intrahousehold allocation, wherein parents engage in a consumption activity (smoking) that produces own utility, while
generating environmental tobacco smoke (ETS) that harms their children’s health. We find a statistically significant negative
association between sample mothers‘ assessed health of their children and the children’s daily exposures to ETS. Mothers’
average annual willingness-to-pay (WTP) for a 1-hour-per-day reduction in child ETS exposure (about a 17% decrease in daily
exposure) is about $150. WTP estimates for respondent mother and child health status further suggest that smoking mothers
on average value their child’s health roughly 55% higher than their own health.
Keywords Children’s health valuation - Environmental tobacco smoke
Helpful comments and suggestions by Scott Atkinson, Donald Kenkel, and two anonymous referees are gratefully acknowledged.
Marcy Agee and Stefanos Nastis provided valuable research assistance. Although the U.S. Environmental Protection Agency provided
financial support through Grant#R82871601, the research has not been subjected to the Agency’s required peer and policy review
and therefore does not necessarily reflect the views of the Agency