Robust estimates of value of a statistical life for developing economies
Center for Agricultural and Rural Development, Economics
Journal or Book Title
Journal of Policy Modeling
First Page or Article ID Number
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.
I12, O15, Q25
Bowland, Bradley J. and Beghin, John, "Robust estimates of value of a statistical life for developing economies" (2001). Economics Publications. 310.