Valuing mortality risk reductions for environmental policy: A white paper

Abstract

This white paper addresses the U.S. Environmental Protection Agency’s (EPA) practices regarding the valuation of mortality risk reductions, with a particular focus on empirical estimates of the ‘value of a statistical life’ (VSL) derived from stated preference and hedonic wage studies. The paper primarily targets the EPA’s Science Advisory Board-Environmental Economics Advisory Committee (EEAC) with the objective of discussing key topics related to mortality risk valuation, as well as methods for synthesizing empirical estimates to value risk reductions in future EPA policies. Key topics addressed include improving communication by replacing the VSL terminology with ‘value of mortality risk’ (VMR) and reporting value estimates in terms of risk changes, updating EPA’s estimates of willingness-to-pay for mortality risk reductions, incorporating a ‘cancer differential’ into mortality risk valuation, considering the role of altruism in valuing risk reductions, and exploring functional benefit transfer methods. The paper seeks EEAC feedback on these topics and approaches to shape future research and policy development. – AI-generated abstract.