Title

Robust estimates of value of a statistical life for developing economies

Campus Units

Center for Agricultural and Rural Development, Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2001

Journal or Book Title

Journal of Policy Modeling

Volume

23

Issue

4

First Page or Article ID Number

385

Last Page

396

DOI

10.1016/S0161-8938(01)00072-2

Abstract

Environmental economists use the value-of-statistical-life (VSL) approach to value mortality changes resulting from environmental improvement. Because of scarce data, VSL estimates are unavailable for most developing countries. Using robust regression techniques, we conduct a meta-analysis of VSL studies in industrialized countries to derive a VSL prediction function for developing economies accounting for differences in risk, income, human capital levels, and other demographic characteristics of these economies. We apply our estimated VSL to assess the willingness to pay for reduction in mortality linked to air pollution in Santiago, Chile. We find willingness-to-pay estimates in the range of 1992 purchasing power parity (PPP) $519,000–675,000 per life.

JEL Classification

I12, O15, Q25

Comments

This is a working paper of an article from Journal of Policy Modeling 23 (2001): 385, doi:10.1016/S0161-8938(01)00072-2. Posted with permission.