Economic Valuation of Anti-retroviral Drugs in Ethiopia: Application of CVM

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Date

2003-06

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Addis Ababa University

Abstract

In this study, the willingness to pay of people living with HIV/AIDS for antiretroviral drugs is assessed. A contingent valuation survey was carried out on 440 adults living with HIV/AIDS. The research result indicates that the mean willingness to pay for the drugs is Birr 163.6 and the median is Birr 100, per month. A multivariate statistical analysis of the determinants of individual’s willingness to pay reveals that individuals with larger family size, with others paying for their treatment cost other than themselves and with spouse deceased are less willing to pay for the drugs. Individuals with higher income are more willing to pay. Older respondents are also willing to pay more. Among the explanatory variables, income was found to be highly significant in influencing WTP by the different estimation techniques employed in the research implying low income levels of respondents prevent them from acquiring the drugs, if the drugs be marketed. This calls for the participation of many stakeholders in the acquisition and distribution of anti-retroviral drugs if equityisdesired. Key words: Contingent valuation method, Willingness to pay, antiretroviral drugs, CLAD

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Keywords

Contingent valuation method, Willingness to pay, antiretroviral drugs, CLAD

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