Valuing Risks: New Information on the Willingness to Pay for Changes in Fatal Risks

摘要

The report updates the Violette and Chestnut (1983) report which assembled and reviewed estimates of willingness to pay for changes in fatal risks. The results of several different studies are compared by reference to the estimated 'value of life.' It is a way of comparing valuations for small changes in small risks that affect a large number of people. The updated review suggests a possible narrowing of the range of values for on-the-job risks of death to $1.5 to $3 million. Further questions remain concerning if these value of life estimates are appropriate for valuing reduced risks from environmental hazards.