Value Of A Statistical Life Estimates Research Articles

“The Value of a Statistical Life” in Economics, Law, and Policy: Reflections from the Pandemic

Mitigation policies during the COVID-19 pandemic were justified on benefit-cost-analysis (BCA) grounds, with the value of a statistical life (VSL) measuring the benefit of saving lives. This essay argues that a BCA and VSL framework is not a value-neutral basis for pandemic policy: first because the characterization of labor-market behavior as choices merely regarding money and risk of mortality implicitly endorses those institutions that constrain such choices, as illustrated by pandemic economic conditions; and second because this characterization assumes that individual subjects have exogenous preferences, and accordingly have one “true” valuation, thus ignoring how subjectivity is constituted by capitalist institutions. Such VSL estimates in pandemic scholarship illustrate the search for a single valuation regarding elderly life, whereas the “good” of human life warrants valuation in our capacity as citizens in democratic institutions rather than as market agents. The language of overdetermination highlights the contradictory effects of the mutual constitution of institutions and the individual subject.

Econometric models derived from meta-analysis to estimate VSL and VOLY associated to air pollution at a global level: preliminary results

Abstract Epidemiological research has shown a strong correlation between air pollution and risk of premature death. Among the damage costs of air pollution, premature mortality is by far the largest contributor, hence accounting for the number of deaths linked to poor air quality has become a key environmental indicator. Monetizing reductions in risks of death through cost-benefit analyses can be useful to create efficient public policies aiming at improving air quality. The benefits of prevented mortalities can be expressed in terms of a Value of a Statistical Life (VSL), an economic parameter representing individuals’ willingness to exchange wealth for mortality risk reduction. In addition, the monetary Value Of a Life Year (VOLY) is also an important parameter to be measured, as it considers the change in life expectancy associated with air pollution. However, determining reliable estimates of VSL and VOLY can be challenging, as the methods employed in different studies can vary widely between, and even within, countries. Furthermore, most countries have insufficient and unreliable VSL and VOLY estimates. Lack of country-specific data and common methodology makes it difficult to assess climate policy at a global scale. To address this gap, a meta-analysis of existing literature is conducted to develop econometric models for estimating VSL and VOLY on a global level. The comprehensive search of articles and databases revisits established quantification methodologies for air pollution related mortality, which results in an extensive database of empirical data on VSL and VOLY estimates. Based on this new and updated database, transfer functions of VSL and VOLY are estimated for specific pollutants and different countries, according to each country's distinctive characteristics.

The value of a statistical life in reducing fire risk: A choice experiment among dutch citizens

Getting insight in the value of a statistical life (VOSL) attributed by the public to a specific risk such as dying from a house fire is important for policy makers to decide upon investments in risk policies. We conduct a choice experiment among 504 Dutch citizens, including trade-offs between a reduction in the probability of dying from a house fire and tax increases, to derive the VOSL in the Dutch context of fire risk. We estimate a random parameters logit model, allowing for heterogeneity in citizen preferences. We find that after correcting for choice anomalies among respondents our VOSL estimate is around EURO 15–22 million.

코로나바이러스감염증-19 사망의 통계적 생명가치와 사회적 비용 추정

This is supposedly the first contingent valuation(CV) study which has estimated the value of a statistical life(VSL) lost due to COVID-19. The VSL was estimated to be 44.26 billion Won for Koreans. This VSL estimate was used to derive 144.40 trillion Won for the social cost of 32,625 premature deaths due to COVID-19 reported by January 9, 2023. This huge amount of cost is equivalent to 11.9% of the central government’s total budget for the same period. As for the local gvernments, the estimated social cost of Gyeonggi-do is the highest in the country: the estimate is 3.57 billion Won, which accounts for as much as 38.2% of the total budget of the Province. Busan-si and Gangwon-do show the highest social costs per 100,000 residents, and Sejong-si shows the lowest one. Also provided are examples of economic assessment by utilising the VSL estimate the study derived.

Willingness to Pay for Road Safety Improvements in Poland

Purpose: The article presents the results of empirical research on the application of the WTP method in Poland and VSL for Poland for different road users: pedestrians and drivers. Design/Methodology/Approach: An essential instrument for improving road traffic safety is to identify factors determining the behaviour of road users and their willingness to pay (WTP) for reducing the risk of death or injury. The research was conducted on a representative sample of 1085 people using a conjoint analysis. It was preceded by preliminary research using the bulletin board discussion technique for improving the quality of the measuring instrument. Findings: The research allowed for estimating the Value of a Statistical Life (VSL) and determine the profile of behaviour of protected and unprotected road users. The VSL estimate for Poland does not differ significantly from the values determined for other European and non-European countries, but is lowest. Practical Implications: The study provides in-depth knowledge about the socio-economic profile of road users necessary to improve the effectiveness of educational programs in the field of road safety improvement. Originality/value: The VSL research was conducted with an exclusive, two-stage method of using the bulletin board discussion (BBD) technique and the conjoint analysis based on the WTP method; This study estimated the Value of Statistical Life in terms of road safety for different road users: pedestrians and drivers in Poland.

Systematic Review to Update 'Value of a Statistical Life' Estimates for Australia.

The value of a statistical life (VSL) estimates individuals’ willingness to trade wealth for mortality risk reduction. This economic parameter is often a major component of the quantified benefits estimated in the evaluation of government policies related to health and safety. This study reviewed the literature to update the VSL recommended for Australian policy appraisals. A systematic literature review was conducted to capture Australian primary studies and international review papers reporting VSL estimates published from 2007 to January 2019. International estimates were adjusted for income differences and the median VSL estimate was extracted from each review study. VSL estimates were used to calculate the value of a statistical life year. Of the 18 studies that met the inclusion criteria, two studies were primary Australian studies with a weighted mean VSL of A$7.0 million in 2017 values. The median VSL in the review studies was A$7.3 million. For Australian public policy appraisals, we recommend the consideration of a base case VSL for people of all ages and across all risk contexts of A$7.0 million. Sensitivity analyses could use a high value of A$7.3 million and a low value that reflects the value (A$4.3 million) currently recommended by the Australian government.

The Heterogeneous Value of a Statistical Life: Evidence from U.S. Army Reenlistment Decisions

We estimate the value of a statistical life (VSL), or the willingness to trade-off wealth and mortality risk, among 430,000 U.S. Army soldiers choosing whether to reenlist from 2002-2010. Using a discrete choice random utility approach and significant variation in retention bonuses and mortality risk, we recover average VSL estimates between $500,000 and $900,000, an order of magnitude smaller than U.S. civilian labor market estimates. We then document substantial heterogeneity by recovering indifference curves between wealth and mortality risk. The VSL increases with mortality risk within type, and soldiers in combat occupations have lower VSLs than those in noncombat occupations.

Publication Selection Biases in Stated Preference Estimates of the Value of a Statistical Life

AbstractThis article presents the first meta-analysis documenting the extent of publication selection biases in stated preference estimates of the value of a statistical life (VSL). Stated preference studies fail to overcome the publication biases that affect much of the VSL literature. Such biases account for approximately 90% of the mean value of published VSL estimates in this subset of the literature. The bias is greatest for the largest estimates, possibly because the high-income labor market and stated preference estimates from the USA serve as an anchor for the VSL in other higher income countries. Estimates from lower-income countries exhibit less bias but remain unreliable for benefit-cost analysis. Unlike labor market estimates of the VSL, there is no evidence that any subsample of VSL estimates is free of significant publication selection biases. Although stated preference studies often provide the most readily accessible country-specific VSL estimates, a preferable approach to monetizing mortality risk benefits is to draw on income-adjusted estimates from labor market studies in the USA that use Census of Fatal Occupational Injuries risk data. These estimates lack publication selection effects as well as the limitations that are endemic to stated preference methods.

Publication Selection Biases in Stated Preference Estimates of the Value of a Statistical Life

This article presents the first meta-analysis documenting the extent of publication selection biases in stated preference estimates of the value of a statistical life (VSL). Stated preference studies fail to overcome the publication biases that affect much of the VSL literature. Such biases account for approximately 90% of the mean value of published VSL estimates in this subset of the literature. The bias is greatest for the largest estimates, possibly because the high-income labor market and stated preference estimates from the U.S. serve as an anchor for the VSL in other higher-income countries. Estimates from lower-income countries exhibit less bias but remain unreliable for benefit-cost analysis. Unlike labor market estimates of the VSL, there is no evidence that any subsample of VSL estimates is free of significant publication selection biases. Although stated preference studies often provide the most readily accessible country-specific VSL estimates, a preferable approach to monetizing mortality risk benefits is to draw on income-adjusted estimates from labor market studies in the United States that use Census of Fatal Occupational Injuries risk data. These estimates lack publication selection effects as well as the limitations that are endemic to stated preference methods.

The Value of a Statistical Life in Thailand: Evidence from the Labour Market

Using the 2012–2014 Labour Force survey (N = 109 947) and data from the Social Security Office, this study uses the standard hedonic wage approach to estimate the value of a statistical life (VSL) in Thailand. Population-weighted ordinary least-squares (OLS) and quantile regressions conditional on the 10th, 25th, 50th (median), 75th, and 90th percentiles of the income distribution are performed on the repeated cross-sectional sample as well as each of the survey waves. Based on the repeated cross-sectional sample, the mean and median VSLs, averaged across 2012–2014, are estimated to be approximately 1.21 and 0.66 million in 2011 USD, respectively. The mean income elasticity is 1.488, indicating the Thai VSL is income elastic. This study represents the first VSL study in Thailand that uses nationally representative data on actual labour market outcomes. It captures income heterogeneity of the VSL, and demonstrates that VSL estimates vary importantly with time, gender, job sector, and region of residence.

Cryptodamages: Monetary value estimates of the air pollution and human health impacts of cryptocurrency mining

Cryptocurrency mining uses significant amounts of energy as part of the proof-of-work time-stamping scheme to add new blocks to the chain. Expanding upon previously calculated energy use patterns for mining four prominent cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Monero), we estimate the per coin economic damages of air pollution emissions and associated human mortality and climate impacts of mining these cryptocurrencies in the US and China. Results indicate that in 2018, each $1 of Bitcoin value created was responsible for $0.49 in health and climate damages in the US and $0.37 in China. The similar value in China relative to the US occurs despite the extremely large disparity between the value of a statistical life estimate for the US relative to that of China. Further, with each cryptocurrency, the rising electricity requirements to produce a single coin can lead to an almost inevitable cliff of negative net social benefits, absent perpetual price increases. For example, in December 2018, our results illustrate a case (for Bitcoin) where the health and climate change “cryptodamages” roughly match each $1 of coin value created. We close with discussion of policy implications.

The Value of a Statistical Life for Risk-Averse and Risk-Seeking Individuals.

This article estimates the value of a statistical life (VSL) for Chile under the hedonic wage method while accounting for individual risk preferences. Two alternative measures of risk aversion are used. First, risk aversion is directly measured using survey measures of preferences over hypothetical gambles, and second, over observed individual behaviors that may proxy for risk preferences, such as smoking status, are used. I reconcile the results with a theoretical model of economic behavior that predicts how the wage-risk tradeoff changes as risk aversion differs across individuals. The VSL estimates range between 0.61 and 8.68 million dollars. The results using smoking behavior as a proxy for risk attitudes are consistent with previous findings. However, directly measuring risk aversion corrects the wage-risk tradeoff estimation bias in the opposite direction. The results are robust to other observed measures of risk aversion such as drinking behavior and stock investments. Results suggest that, consistent with the literature that connects smoking behavior with labor market outcomes, smoking status could be capturing poor health productivity effect in addition to purely riskpreferences.

The Value of a Statistical Life

The value of a statistical life (VSL) is the local tradeoff rate between fatality risk and money. When the tradeoff values are derived from choices in market contexts the VSL serves as both a measure of the population’s willingness to pay for risk reduction and the marginal cost of enhancing safety. Given its fundamental economic role, policy analysts have adopted the VSL as the economically correct measure of the benefit individuals receive from enhancements to their health and safety. Estimates of the VSL for the United States are around $10 million ($2017), and estimates for other countries are generally lower given the positive income elasticity of the VSL. Because of the prominence of mortality risk reductions as the justification for government policies the VSL is a crucial component of the benefit-cost analyses that are part of the regulatory process in the United States and other countries. The VSL is also foundationally related to the concepts of value of a statistical life year (VSLY) and value of a statistical injury (VSI), which also permeate the labor and health economics literatures. Thus, the same types of valuation approaches can be used to monetize non-fatal injuries and mortality risks that pose very small effects on life expectancy. In addition to formalizing the concept and measurement of the VSL and presenting representative estimates for the United States and other countries our Encyclopedia selection addresses the most important questions concerning the nuances that are of interest to researchers and policymakers.

The Value of a Statistical Life in a Dictatorship: Evidence from Stalin

We examine the value of a statistical life (VSL) in interwar Soviet Union. Our approach requires addressing the preferences of Stalin. We model these on the basis of the policy of statistical repression, which was an integral part of the Great Terror. We use regional variation in the victims generated by this policy to structurally estimate the value that Stalin would have been willing to accept for a reduction in citizens’ fatality risk. Our estimate of this value is $43,000, roughly 6% of the VSL estimate in the US in 1940 and 29% of the VSL estimate in modern India.

Pricing Lives: International Guideposts for Safety

Government agencies throughout the world use the value of a statistical life (VSL) to monetise the mortality risk reduction benefits of government policies. The most reliable empirical estimates of the VSL using US labour market data are about US$10 million (year 2015 US dollars). Based on international estimates of the income elasticity of the VSL, one can transfer these values to other countries, leading to my VSL estimate for Australia of US$7.9 million, or A$10.0 million, which is over double the current Australia best‐practices value. Transferring US VSL estimates to other nations after accounting for income differences will boost global VSL estimates. Potential refinements of the VSL based on age and income are also feasible. The VSL could serve a pivotal role in promoting safety by valuing lives in litigation contexts, regulatory sanctions, and corporate risk analyses.

Economic valuation of a rise in ambient radiation risks: Hedonic pricing evidence from the accident in Fukushima

AbstractUsing a combined data set of radiation levels and property prices from Fukushima and Miyagi prefectures that runs from 2009 to early 2017, the economic impact of radiation from the Fukushima nuclear accident is assessed. A 1 percent rise in radiation is associated with approximately 0.051 percentage drop in housing prices and though the level of radiation falls substantially after 2011, the estimated elasticity is broadly stable. The associated estimate of VSL (value of a statistical life) is in the region of US$4.5–6.4 million, which suggests no strong element of dread or overestimation of risks is present.

Pricing Lives: International Guideposts for Safety

Government agencies throughout the world use the value of a statistical life (VSL) to monetize the mortality risk reduction benefits of government policies. The most reliable empirical estimates of the VSL using U.S. labor market data are about US$10 million (year 2015 U.S. dollars). Based on international estimates of the income elasticity of the VSL, one can transfer these values to other countries, leading to my VSL estimate for Australia of US$7.9 million, or A$10.0 million, which is over double the current Australia best practices number. Transferring U.S. VSL estimates to other nations after accounting for income differences will boost global VSL estimates. Potential refinements of the VSL based on age and income are also feasible. The VSL could serve a pivotal role in promoting safety by valuing lives in litigation contexts, regulatory sanctions, and corporate risk analyses.

Best Estimate Selection Bias in the Value of a Statistical Life

Selection of the best estimates of economic parameters frequently relies on the “best estimates” or a meta-analysis of the “best set” of parameter estimates from the literature. Using an all-set dataset consisting of all reported estimates of the value of a statistical life (VSL) as well as a best-set sample of the best estimates from these studies, this article estimates statistically significant publication selection biases in each case. Biases are much greater for the best-set sample, as one might expect, given the subjective nature of the best-set selection process. For the all-set sample, the mean bias-corrected estimate of the VSL for the preferred specification is $8.1 million for the whole sample and $11.4 million based on the CFOI data, while for the best-set results, the whole sample value is $3.5 million, and the CFOI data estimate is $4.4 million. Previous estimates of huge publication selection biases in the VSL estimates are attributable to these studies’ reliance on best-set samples.

Income Elasticity and the Global Value of a Statistical Life

Countries throughout the world use estimates of the value of a statistical life (VSL) to monetize fatality risks in benefit-cost analyses. However, the vast majority of countries lack reliable revealed preference or stated preference estimates of the VSL. This article proposes that the best way to calculate a VSL for countries with insufficient or unreliable data is to transfer a base VSL from the United States calculated using labor market estimates from Census of Fatal Occupational Injuries data, coupled with adjustments for differences in income between the United States and the country of interest. This approach requires estimation of two critical inputs: a base U.S. VSL and the income elasticity of the VSL. Drawing upon previous meta-analyses that include adjustments for publication selection biases, we adopt a base VSL of $9.6 million. Based on a sample of 953 VSL estimates from 68 labor market studies of the VSL, we estimate the income elasticity of the VSL within the United States to be from 0.5 to 0.7 and to be just above 1.0 for non-U.S. countries. Quantile regression reveals that much of the disparity income elasticities is attributable to income differences between the United States and other countries, as the income elasticity increases for lower income populations. Using income classifications from the World Bank, we calculate average VSLs in lower income, lower-middle income, upper-middle income, and upper income countries to be $125,000, $380,000, $1.3 million, and $5.7 million, respectively. We also present VSL estimates for all 189 countries for which World Bank income data are available, yielding a VSL range from $104,000 to $23.2 million.

Anchoring biases in international estimates of the value of a statistical life

U.S. labor market estimates of the value of a statistical life (VSL) were the first revealed preference estimates of the VSL in the literature and continue to constitute the majority of such market estimates. The VSL estimates in U.S. studies consequently may have established a reference point for the estimates that researchers analyzing data from other countries are willing to report and that journals are willing to publish. This article presents the first comparison of the publication selection biases in U.S. and international estimates using a sample of 68 VSL studies with over 1000 VSL estimates throughout the world. Publication selection biases vary across the VSL distribution and are greater for the larger VSL estimates. The estimates of publication selection biases distinguish between U.S. and international studies as well as between government and non-government data sources. Empirical estimates that correct for the impact of these biases reduce the VSL estimates, particularly for studies based on international data. This pattern of publication bias effects is consistent with international studies relying on U.S. estimates as an anchor for the levels of reasonable estimates. U.S. estimates based on the Census of Fatal Occupational Injuries constitute the only major set of VSL studies for which there is no evidence of statistically significant publication selection effects. Adjusting a baseline bias-adjusted U.S. VSL estimate of $9.6 million using estimates of the income elasticity of the VSL may be a sounder approach for generating international estimates of the VSL than relying on direct estimates from international studies.