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Efficient Regulation of Environmental Health Risks

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  • Lichtenberg, Erik
  • Zilberman, David

Abstract

This paper introduces a decision framework for regulating environmental health risks which incorporates the characteristic uncertainty about the dissemination and toxicological impacts of environmental contaminants and the behavioral restrictions commonly encountered. Analysis indicates that increases in uncontrollable uncertainty will increase emphasis on average performance, that more potent or less controllable risks will be regulated more stringently and that increasing aversion to uncertainty may result in poorer average performance. The paper also developes an alternative measure for valuing risk of loss of life taking into account uncertainty about health risk generation processes. Copyright 1988, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 103 (1988)
Issue (Month): 1 (February)
Pages: 167-78

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Handle: RePEc:tpr:qjecon:v:103:y:1988:i:1:p:167-78

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Web page: http://mitpress.mit.edu/journals/

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  1. Beavis, Brian & Walker, Martin, 1983. "Achieving environmental standards with stochastic discharges," Journal of Environmental Economics and Management, Elsevier, vol. 10(2), pages 103-111, June.
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