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Towards Principles and Standards for the Benefit-Cost Analysis of Safety

Author

Listed:
  • Farrow Scott

    (University of Maryland, Baltimore County)

  • Viscusi W. Kip

    (Vanderbilt University)

Abstract

Benefit-cost analysis (BCA) is frequently applied to decisions involving public safety which requires analyzing risk and assessing options to manage risks. Principles and standards may assist analysts, decision-makers, and the public in developing and interpreting such BCAs. Principles and standards at best represent commonly held views among a community of practice. Such views are continually evolving with advances in the field. This paper presents a modularized format towards principles and standards that may assist in focusing discussion and decisions about whether such proposals actually reflect principles and standards within the benefit-cost analysis community of practice. Among topics covered are welfare measures, benefit or cost transfer, and valuing uncertain outcomes.

Suggested Citation

  • Farrow Scott & Viscusi W. Kip, 2011. "Towards Principles and Standards for the Benefit-Cost Analysis of Safety," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 1-25, August.
    • Handle: RePEc:bpj:jbcacn:v:2:y:2011:i:3:n:5
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    References listed on IDEAS

    as
    1. James T. Hamilton & W. Kip Viscusi, 1999. "Calculating Risks?: The Spatial and Political Dimensions of Hazardous Waste Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262082780, January.
    2. Robert W. Hahn & Richard L. Schmalensee & Roger Noll & Robert Stavins & Lester B. Lave & George C. Eads & Milton Russell & V. Kerry Smith & Maureen L. Cropper & Paul R. Portney & Kenneth J. Arrow, 1996. "Benefit-Cost Analysis in Environmental, Health, and Safety Regulation: A Statement of Principles," Books, American Enterprise Institute, number 51790, June.
    3. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
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    6. Robert J. Brent, 1998. "Cost–Benefit Analysis for Developing Countries," Books, Edward Elgar Publishing, number 1236.
    7. Jamison, Dean T. & Jamison, Julian, 2011. "Characterizing the Amount and Speed of Discounting Procedures," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 2(02), pages 1-56, April.
    8. Lisa A. Robinson & James K. Hammitt, 2013. "Behavioral economics and the conduct of benefit–cost analysis: towards principles and standards," Chapters,in: Principles and Standards for Benefit–Cost Analysis, chapter 10, pages 317-363 Edward Elgar Publishing.
    9. David F. Burgess & Richard O. Zerbe, 2013. "Appropriate discounting for benefit–cost analysis," Chapters,in: Principles and Standards for Benefit–Cost Analysis, chapter 7, pages 247-263 Edward Elgar Publishing.
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    Citations

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    Cited by:

    1. Kip Viscusi, W. & Gayer, Ted, 2016. "Rational Benefit Assessment for an Irrational World: Toward a Behavioral Transfer Test," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 7(01), pages 69-91, March.
    2. Burgess, David F. & Zerbe, Richard O., 2013. "The most appropriate discount rate," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 4(03), pages 391-400, December.
    3. Ted Gayer & W. Kip Viscusi, 2016. "Determining the Proper Scope of Climate Change Policy Benefits in U.S. Regulatory Analyses: Domestic versus Global Approaches," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(2), pages 245-263.
    4. Farrow Scott, 2013. "How (Not) to Lie with Benefit-Cost Analysis," The Economists' Voice, De Gruyter, vol. 10(1), pages 45-50, December.
    5. Jones, Michael, 2017. "The Effect of Job Readiness Programs on Criminal Behavior," MPRA Paper 81908, University Library of Munich, Germany.

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