Children's health benefits of reducing environmental tobacco smoke exposure: evidence from parents who smoke

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.