COVID-19 Vaccine Demand and Financial Incentives

• Published in: Applied health economics and health policy 2021-11, Vol.19 (6), p.871-883
• Main Authors: Carpio, Carlos E., Coman, Ioana A., Sarasty, Oscar, García, Manuel
• Format: Article
• Language: English
• Subjects: Coronaviruses; COVID-19; COVID-19 vaccines; Efficacy; FDA approval; Health Administration; Health Economics; Herd immunity; Immunization; Incentives; Internet; Medicine; Medicine & Public Health; Original; Original Research Article; Payments; Pharmacoeconomics and Health Outcomes; Public finance; Public Health; Quality of Life Research; Vaccines; Valuation; Willingness to pay
• ISSN: 1175-5652; 1179-1896
• DOI: 10.1007/s40258-021-00687-9

Background Public health experts estimate that only very high COVID-19 vaccine uptake levels can result in herd immunity. Objective This study’s main objective was to evaluate the impact of vaccine price levels, including payments, and the efficacy levels on COVID-19 vaccine demand. Methods Data for this study were collected from an online survey of 2000 US individuals aged 18 years and older, which included a set of contingent valuation questions. Parametric and nonparametric procedures were used to estimate the distribution of willingness-to-pay and willingness-to-accept values for the vaccine and to assess its association with vaccine efficacy levels (50, 70, and 95%). Results Most of the individuals (60%) indicated they were willing to pay a positive amount for the vaccine; 13.7% said they would only accept the vaccine if it were free; 14.1% were willing to take the vaccine only if they were paid; and 12.2% were not willing to accept the vaccine. The vaccine efficacy level was found to affect an individual’s demand for the vaccine. Estimated mean willingness-to-pay values were: US$594, US$706, and US$723 for vaccines with efficacy levels of 50, 70, and 95%, respectively. Conclusions US individuals highly value the COVID-19 vaccine, and about 88% of the US population would accept the vaccination; however, 14% indicated they would get vaccinated if compensated. Payments of about US$500 or more would be needed to sufficiently incentivize 50% or more of this group vaccinated.