Value Of Statistical Life Research Articles

Why Office of Management and Budget’s (OMB) Social Welfare Function Is Not Society’s Social Welfare Function

Abstract In 2023, the U.S. Office of Management and Budget (OMB) issued guidance documents that specified new procedures for assessing prospective government regulations (Circular A-4) and economic policies more generally (Circular A-94). These revisions to long-standing guidance were not minor updates but shifted policy analyses from an efficiency-oriented perspective to a redistributive approach. OMB broadened the guidelines for reporting distributional consequences of policies and also specified how policy impacts on different income groups should be weighted. The weights assume that the social welfare function is governed by the sum of identical individual utility functions, each of which exhibits a substantial rate of diminishing marginal utility of income. The resulting weights provide a premium for households below the median-income level and a considerable penalty for those at higher-income levels. Application of the weights to property losses creates potentially substantial inefficiencies. If based on current empirical evidence on the income elasticity of the value of a statistical life rather than assuming that there is a complete offset of the weights, application of the weights to mortality risk valuation would generate inequities in protection.

Measuring the economic impact of environmental stressors on health

Abstract Environmental stressors are an important source of burden of disease worldwide. The accurate economic evaluation of health hazards caused by environmental stressors guide the design of more effective and comprehensive public policies. However, guidelines on cost assessment, monetisation and discounting methodologies are scarce. Therefore, several different methodologies are applied in multiple contexts, making comparability difficult. Within BEST-COST, methods for monetising health hazards caused by environmental stressors are identified and described based on a systematic review approach. An electronic search was performed in Medline, Scopus, Web of Science and Econlit, alongside with grey literature and citation and reference tracking identifying all relevant studies. Different methods are identified, such as value of a statistical life (VSL) and value of a life year (VOLY), as well as specificities from data collection to modelling for the economic evaluation. These methods may be categorised based on their approach (market-based or non-market based), perspective of analysis (payer, patient or societal) and health measures. In this presentation, the various key methodologies to assess the economic impact of environmental stressors on health will be introduced and demonstrated. Through these insights, workshop participants will be supported in performing health impact assessments and cost-benefit analyses, which play a pivotal role in informing public policies that impact environment and subsequently health.

Cost-benefit analysis: just a step in the HIA process

Abstract The economic analysis within Health Impact Assessments (HIA) is a critical component in informing public policy decisions by assessing the financial implications of health outcomes associated with the different intervention options. Health metrics play a role defining the cost-effectiveness and societal value associated with the interventions. These metrics, quantifying the health impacts, include quality-adjusted life years (QALYs), years of life lost (YLLs) or disability-adjusted life years (DALYs). On another level, such metrics need to be translated into cost-effectiveness and societal value in which other methods play a role, such as the value of statistical life (VSL) or the value of a life year (VOLY). While VSL quantifies the value individuals place on reducing mortality risk, VOLY evaluates the value attributed to extending life expectancy. On another hand, uncertainties related to economic valuation pose challenges to the accuracy and reliability of cost estimates within HIA. These come from several factors, including data quality, methodological differences across studies, and subjective judgments involved in valuing health states. In fact, estimating the economic value of a prevented death involves multifaceted considerations and important assumptions. Additionally, assigning monetary values to non-fatal health outcomes, such as disability or reduced quality of life, involves subjective assessments and value judgments. By selecting appropriate metrics, considering diverse data sources, and addressing methodological steps and uncertainties, HIA practitioners can improve the utility of economic assessments, facilitating evidence-based decision-making in public health policy and resource allocation. This work was supported by National Funds through FCT - Fundação para a Ciência e a Tecnologia,I.P., within CINTESIS, R&D Unit (reference UIDP/4255/2020).

The value of statistical life in air and road transport

Purpose Accidents occur in all transport modes and can cause significant material damage and loss of life. To efficiently allocate resources that enable the reduction of accidents, it is necessary to estimate the value of a statistical life (VSL). This study aims to show how the statistical value of human life in air and road traffic is determined. Design/methodology/approach This study examines and applies recent empirical evidence aimed at clarifying the basic concept of the VSL and defining the reasons for its importance in evaluating public policies in aviation safety and road traffic safety. The research focuses on the principal equity indicators, both theoretical and empirical, that must be confronted to provide a credible estimate of the VSL. Findings Previous research shows that the VSL could have a considerable range of possible values. This study emphasizes that risk reduction funds need to be distributed in a consistent and equitable manner to achieve the best outcomes for society as a whole. Practical implications This research will guide future research efforts towards understanding the impact of the estimated statistical life value on air and road safety implications. Social implications This study strengthens awareness of the importance of the VSL in evaluating public policies in the field of aviation and road safety. Originality/value To the best of the authors’ knowledge, this study is one of the first to compare air and road traffic from the perspective of the VSL evaluation.

A Systematic Review of Traumatic Brain Injury in Modern Rodent Models: Current Status and Future Prospects.

According to the Centers for Disease Control and Prevention (CDC), the national public health agency of the United States, traumatic brain injury is among the leading causes of mortality and disability worldwide. The consequences of TBI include diffuse brain atrophy, local post-traumatic atrophy, arachnoiditis, pachymeningitis, meningocerebral cicatrices, cranial nerve lesions, and cranial defects. In 2019, the economic cost of injuries in the USA alone was USD 4.2 trillion, which included USD 327 billion for medical care, USD 69 billion for work loss, and USD 3.8 trillion for the value of statistical life and quality of life losses. More than half of this cost (USD 2.4 trillion) was among working-age adults (25-64 years old). Currently, the development of new diagnostic approaches and the improvement of treatment techniques require further experimental studies focused on modeling TBI of varying severity.

Modeled temperature, mortality impact and external benefits of cool roofs and rooftop photovoltaics in London

Population exposure to high temperatures poses health risks and increases mortality. ‘Cool roofs’ (high-albedo roofs) and rooftop photovoltaics (RPV) may reduce temperatures in urban areas. Here, using advanced urban climate modeling, we model impacts of these measures on air temperature and heat-related mortality in London during the record-breaking hot summer of 2018. We estimate changes in mean near-surface air temperature of −0.3 °C in the RPV scenario and −0.8 °C in the cool roof scenario. We find that the heat-related mortality in this period (estimated 655–920) could have been reduced by 96 (12%) by RPV, or 249 (32%) by cool roofs, in scenarios where all roofs have these measures. Monetized using value of statistical life, we estimate benefits for RPV and cool roofs of £237 M and £615 M, respectively. We estimate that up to 20 TWh of electrical energy would be generated in the full RPV scenario. We show that, for conditions such as in London June–August 2018, RPV or cool roofs may reduce near-surface air temperatures and associated heat-related mortality, with cool roofs having a larger effect.

Geriatric falls: an enormous economic burden compared to firearms

BackgroundThis study aimed to assess the medical costs, and the combined costs of fatal firearm injury and fatal falls during a 5 year period. While fatal firearm injury represents a...

A Tale of the Tails: The Value of a Statistical Life at the Tails of the Age Distribution

A Tale of the Tails: The Value of a Statistical Life at the Tails of the Age Distribution

Is Active Mobility Really a Sustainable Way of Travelling in Italian Cities? When and Where Injury Risk Offsets the Benefits of Riding or Walking

Even though active mobility is considered a sustainable way of travelling in urban environments, this might not always be the case because of a lack of infrastructure and poor road safety standards. This study assesses, under an economic point of view, the health benefits of a shift from private cars to active mobility for urban travels in Italy, considering both mortality and morbidity effects. The overall health effect is the result of positive (increased physical activity) and negative effects (increased air pollutant intake and increased road injury risk). Health impacts are measured using disability-adjusted life years and translated into monetary terms using either the value of a life year or the value of a statistical life. On average, the overall health effect of the modal shift is negative. This is largely due to the very high pedestrian and bike road injury rates in Italian cities. The negative effect of increased air pollution intake is negligible if compared with the effect of road injuries. In the case of bikes/e-bikes, the overall health effect is positive in cities characterised by good cycling infrastructure.

Assessing the Value of a Human Life in Heat-Related Mortality: Lessons from COVID-19 in Belgium

This study evaluates the cost of heat-related mortality using economic impacts and mortality data from the COVID-19 pandemic in Belgium as a proxy. By examining the economic loss measured by gross domestic product (GDP) decline and excess mortality during the first COVID-19 wave (March–June 2020), a new estimate for avoided heat-related mortality is derived. The results show that the cost per avoided death is EUR 377,000 ± EUR 222,000, significantly lower than numerical values of the commonly used Value of a Statistical Life (VSL). However, when this cost is divided by the expected remaining (eight) life years at the age of death, the resulting monetary value for a saved life year, in a EUR 47,000 ± EUR 28,000 range, aligns well with commonly used values for the Value of a Life Year (VOLY). Thus, the present study contributes to the ongoing debate on the most appropriate methods for valuing human life in the context of heat-related mortality. By comparing our results with both VSL and VOLY, we underscore the limitations of VSL in the context of heat-related mortality and advocate for VOLY as a more accurate and contextually relevant metric. These findings may offer useful insights for policymakers in evaluating and prioritizing investments in heat-related mortality-prevention strategies.

Consumer Perception of Food Safety and Valuation of Statistical Life: A Contingent Valuation Study

The value of statistical life (VSL) reflects the trade-off between money and the risk of death. It is a key indicator for conducting regulatory impact assessments. The main purpose of this study was to estimate the VSL in the field of food safety. At the same time, it investigates respondents’ willingness to pay (WTP) for reducing the risk of death from foodborne illnesses and explores the impact of factors such as the average household monthly income, health status, and education level on WTP. We conducted a survey using an open-ended contingent valuation method among 1307 respondents aged 18 and above to determine their WTP. Based on the WTP survey results, we calculated the VSL in the food safety sector. We used binary logit and Tobit models to analyze the influencing factors. The results of the study show that the median WTP for reducing the risk of foodborne illness is CNY 100 (USD 16), and the estimated VSL is approximately CNY 9.09 million (USD 141 million). Indicators such as the average household monthly income, health status, and education level are important factors affecting WTP. This study will help practitioners, researchers, and policymakers understand the current population’s attitudes towards food safety regulations and determine the priorities for regulatory implementation. Future research can explore the effects of different elicitation methods, cultural differences, and regional variations on WTP and VSL.

Unacknowledged health costs of subway transportation: Commuting time dominant environmental inequality in PM2.5 exposure

IntroductionThe subway network offers economical and swift transportation for long-distance commuters, simultaneously mitigating urban congestion and environmental challenges in sprawling metropolises. Nonetheless, studies have revealed that subway represent a microenvironment with heightened exposure to fine particulate matter (PM2.5), a facet of air pollution overlooked by the majority of commuters. Focusing on the case of Beijing's subway commuters, we assess the health and economic impact of personal exposure to PM2.5 during their commuting, as well as the distributional effects of these impacts across subgroups of populations with different daily commuting durations. MethodThis study adopts an integrated process to estimate the health outcomes and associated economic loss caused by subway commutes under different exposure scenarios. The overall daily exposure was estimated by aggregating exposure in different microenvironments using the microenvironmental exposure model. The health impact was then evaluated using the integrated exposure-response (IER) model. The economic value of the health impact was assessed based on the value of statistical life (VSL) of the affected population. ResultOur findings indicate that subway commutes lead to an increase of 11.6% and 26.3% in health damage and corresponding economic loss attributable to PM2.5 exposure through “crowding out” of exposure duration in relatively “cleaner” microenvironments in 2017 and 2020, respectively. Long-distance commuters who travel over 100 min per day, make up 25% of subway commuters and are disproportionately responsible for 40% of the total health damages and economic losses caused by subway PM2.5 exposure. Reducing PM2.5 concentration in subway cabins can more effectively offset the additional impacts brought about by the extended and rather inelastic subway commuting. ConclusionThe result unearthed by our study advocates for urgent measures to ameliorate the air quality within subway systems, a move that promises to mitigate the unequal burdens and rectify the inequities borne by at-risk demographics.

An Estimation of the Monetary Value of the Person-Sievert Useful for Occupational Radiological Protection within the Healthcare System of Sweden.

The As Low As Reasonably Achievable (ALARA) principle includes taking into account economic and societal factors. To consider these factors, decision-aiding techniques such as cost-benefit analysis were introduced by the International Commission on Radiological Protection (ICRP) 50 y ago. Over the years, developments in health economics have led to new ways of deriving the concept of a value of a statistical life (VSL), which now is influencing the monetary value assigned to a unit of collective dose for radiological protection purposes (the α value) used in cost-benefit analyses. The aim of the present study was to estimate an α value useful for occupational radiological protection within the healthcare system of Sweden. A survey based on the stated preference approach was developed and sent to staff who are exposed to ionizing radiation at their work in Region Västra Götaland (Sweden). The survey essentially contained two scenarios: the respondents' willingness to pay for measures against radon exposure at home and their willingness to accept compensation for x-ray exposure at work. Answers from 718 respondents were collected. In the sensitivity analysis of the survey, the overall median VSL based on the two scenarios was calculated to be $50 million (IQR $10 to 363 million). The corresponding α value was established to $1,600 person-mSv -1 ($2,100 person-mSv -1 if excess burden of taxes is excluded). The recommended α value is in the high end compared to other studies but within the interval of values being used by nuclear utilities today. The α value should be seen in the light of ICRP's recommendation about stakeholder involvement as an important part of the optimization process.

The Opportunity Cost of COVID-19 Deaths in the USA

The U.S. is currently the country with the highest number of COVID-19 deaths. By the second week of October 2021, over 700,000 people in the U.S. had died after contracting the virus. When estimating the cost and benefit of a COVID-19 prevention measure, the value of a statistical life (VSL) has been widely used as an approximation for the value of a lost life. However, VSL arguably overstates the costs of deaths caused by COVID-19 because VSL captures the private individual’s benefit, and it is the same for everyone regardless of where they live, their productivity, their age, and their gender. In this study, rather than looking at the cost of life loss due to COVID-19, we focus on the opportunity costs of COVID-19 deaths to society. The opportunity cost of COVID-19 deaths is defined as the combination of direct medical costs and the costs of lost potential lifetime earnings. Our analysis focuses on the period from March 2020 to October 2021. We then quantify the average opportunity cost of COVID-19 deaths across the U.S. and by state level.

Health and Economic Benefits of Complying With the World Health Organization Air Quality Guidelines for Particulate Matter in Nine Major Latin American Cities.

This study aims to estimate the short-term preventable mortality and associated economic costs of complying with the World Health Organization (WHO) air quality guidelines (AQGs) limit values for PM10 and PM2.5 in nine major Latin American cities. We estimated city-specific PM-mortality associations using time-series regression models and calculated the attributable mortality fraction. Next, we used the value of statistical life to calculate the economic benefits of complying with the WHO AQGs limit values. In most cities, PM concentrations exceeded the WHO AQGs limit values more than 90% of the days. PM10 was found to be associated with an average excess mortality of 1.88% with concentrations above WHO AQGs limit values, while for PM2.5 it was 1.05%. The associated annual economic costs varied widely, between US$ 19.5 million to 3,386.9 million for PM10, and US$ 196.3 million to 2,209.6 million for PM2.5. Our findings suggest that there is an urgent need for policymakers to develop interventions to achieve sustainable air quality improvements in Latin America. Complying with the WHO AQGs limit values for PM10 and PM2.5 in Latin American cities would substantially benefits for urban populations.

Exploring the Burden of PM2.5-Related Deaths and Economic Health Losses in Beijing.

Air pollution is one of the major global public health challenges. Using annual fine particulate matter (PM2.5) concentration data from 2016 to 2021, along with the global exposure mortality model (GEMM), we estimated the multi-year PM2.5-pollution-related deaths divided by different age groups and diseases. Then, using the VSL (value of statistical life) method, we assessed corresponding economic losses and values. The number of deaths attributed to PM2.5 in Beijing in 2021 fell by 33.74 percent from 2016, while health economic losses would increase by USD 4.4 billion as per capita disposable income increases year by year. In 2021, the average annual concentration of PM2.5 in half of Beijing's municipal administrative districts is less than China's secondary ambient air quality standard (35 μg/m3), but it can still cause 48,969 deaths and corresponding health and economic losses of USD 16.31 billion, equivalent to 7.9 percent of Beijing's GDP. Therefore, it is suggested that more stringent local air quality standards should be designated to protect public health in Beijing.

Benefit–Cost Analysis of the HHS COVID-19 Campaign: April 2021–March 2022

This study estimated the benefits and costs of the U.S. Department of Health and Human Services' We Can Do This COVID-19 public education campaign (the Campaign) and associated vaccination-related impacts. Weekly media market and national Campaign expenditures were used to estimate weekly first-dose vaccinations that would not have occurred absent the Campaign, weekly Campaign-attributed complete vaccinations, and corresponding COVID-19 cases, hospitalizations, and deaths averted. Benefits were valued using estimated morbidity and mortality reductions and associated values of a statistical life and a statistical case. Costs were estimated using Campaign paid media expenditures and corresponding vaccination costs. The net Campaign and vaccination benefit and return on investment were calculated. Analyses were conducted from 2022 to 2024. Between April 2021 and March 2022, an estimated 55.9 million doses of COVID-19 vaccines would not have been administered absent the Campaign. Campaign-attributed vaccinations resulted in 2,576,133 fewer mild COVID-19 cases, 243,979 fewer nonfatal COVID-19 hospitalizations, and 51,675 lives saved from COVID-19. The total Campaign benefit was $740.2 billion, and Campaign and vaccination costs totaled $8.3 billion, with net benefits of approximately $732.0 billion. For every $1 spent, the Campaign and corresponding vaccination costs resulted in benefits of approximately $89.54. The We Can Do This COVID-19 public education campaign saved more than 50,000 lives and prevented hundreds of thousands of hospitalizations and millions of COVID-19 cases, representing hundreds of billions of dollars in benefits in less than one year. Findings suggest that public education campaigns are a cost-effective approach to reducing COVID-19 morbidity and mortality.

The economic burden of obesity in 2024: a cost analysis using the value of a statistical life

ABSTRACT In 2024, the economic burden of obesity remains a paramount global concern due to its escalating prevalence, which imposes substantial pressures on healthcare systems, hampers productivity, and detracts from the quality of life. This paper explores the evolving obesity epidemic and its economic ramifications, emphasizing the necessity of precise measurement techniques to inform policy development and resource allocation. The study adopts the Value of a Statistical Life (VSL) methodology, which provides an innovative approach to quantifying the monetary value of mortality risk reductions associated with obesity-related health conditions. This approach surpasses traditional cost analyses that focus on direct medical expenses by incorporating a willingness-to-pay metric, reflecting societal preferences for risk mitigation. Our findings present a comprehensive cost analysis for the year 2024, utilizing both total deaths and Disability-Adjusted Life Years (DALYs) within the VSL framework, highlighting the importance of such an approach in understanding the full economic impact of obesity on a global scale.

Health impacts of a cold wave and its economic loss assessment in China’s high-altitude city, Xining

ObjectiveAmidst climate change, extensive research has centered on the health impacts of heatwaves, yet the consequences of cold spells, particularly in cooler, higher-altitude regions, remain under-explored.MethodsAnalyzing climatic data and non-accidental mortality in Xining, China’s second-highest provincial capital, from 2016 to 2020, this study defines cold spells as daily mean temperatures below the 10th, 7.5th, or 5th percentiles for 2–4 consecutive days. A time-stratified case-crossover approach and distributional lag nonlinear modeling were used to assess the link between cold spells and mortality, calculating attributable fractions (AFs) and numbers (ANs) of deaths. The study also examined the impact of cold spells over different periods and analyzed the value of a statistical life (VSL) loss in 2018, a year with frequent cold spells. Stratified analyses by sex, age, and education level were conducted.ResultsA significant association was found between cold spells and non-accidental mortality, with a relative risk of 1.548 (95% CI: 1.300, 1.845). The AF was 33.48%, with an AN of 9,196 deaths during the study’s cold period. A declining trend in mortality risk was observed from 2019–2020. The 2018 VSL was approximately 2.875 billion CNY, about 1.75% of Xining’s GDP. Higher risks were noted among males, individuals aged ≥ 65, and those with lower education levels.ConclusionThe findings underscore the vulnerability and economic losses of high-altitude cities to cold spells. Implementing interventions such as improved heating, educational programs, and community support is vital for mitigating these adverse health effects.

Household air pollution and attributable burden of disease in rural China: A literature review and a modelling study

Household air pollution prevails in rural residences across China, yet a comprehensive nationwide comprehending of pollution levels and the attributable disease burdens remains lacking. This study conducted a systematic review focusing on elucidating the indoor concentrations of prevalent household air pollutants—specifically, PM2.5, PAHs, CO, SO2, and formaldehyde—in rural Chinese households. Subsequently, the premature deaths and economic losses attributable to household air pollution among the rural population of China were quantified through dose-response relationships and the value of statistical life. The findings reveal that rural indoor air pollution levels frequently exceed China's national standards, exhibiting notable spatial disparities. The estimated annual premature mortality attributable to household air pollution in rural China amounts to 966 thousand (95% CI: 714–1226) deaths between 2000 and 2022, representing approximately 22.2% (95% CI: 16.4%−28.1%) of total mortality among rural Chinese residents. Furthermore, the economic toll associated with these premature deaths is estimated at 486 billion CNY (95% CI: 358–616) per annum, constituting 0.92% (95% CI: 0.68%−1.16%) of China's GDP. The findings quantitatively demonstrate the substantial disease burden attributable to household air pollution in rural China, which highlights the pressing imperative for targeted, region-specific interventions to ameliorate this pressing public health concern.