Measuring the public’s willingness to pay for diabetes prevention program in Singapore : a contingent valuation approach

• Main Authors: Lim, Wen Jing, Ong, Ying Jie, Tan, Yin Yan
• Other Authors: Chia Wai Mun
• Format: Final Year Project
• Language: English
• Published: 2019
• Subjects: DRNTU::Social sciences::Economic development
• Online Access: http://hdl.handle.net/10356/77070
• Institution: Nanyang Technological University

In light of recent findings that 1 in 9 Singaporeans suffer from the chronic but preventable Type 2 diabetes mellitus (T2DM), there is an urgency in finding a suitable risk prevention method. Singapore has embarked on a “war against diabetes”, with Health Promotion Board (HPB) implementing a Diabetes Prevention Program (DPP). Considering that there is high direct and indirect costs of diabetes to both the individual and society, determining the general public’s Willingness-to-Pay (WTP) for DPPs has become critical. This study, based on a random sample of 337 Singaporean residents, examines WTP using a face-to-face Double-Bounded Dichotomous Choice (DBDC) survey. The Contingent Valuation (CV) survey was conducted in January 2019 at various locations in Singapore. A consistent average WTP value of ~$84 was obtained using both a non-linear estimation and the Kaplan Meier survival analysis. The double bounded probit regressions reveal that age, education, self perception of health consciousness and self perception of lifetime risk are significant factors that affect WTP. Three interaction terms, (1) age and per capita household income (PCI), (2) current own risk perception and BMI, (3) family history and own perception of health consciousness were also found to be significant. Given that this paper is the first to estimate the WTP for DPPs in Singapore, implications on how to price DPPs for different target groups could be revealed. Further research on the findings of this paper may also impact the formation of future DPP related policies for Asians. Keywords: Diabetes Prevention Program, Contingent Valuation, Willingness-to-pay, T2DM