IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v34y2006i3p385-406.html
   My bibliography  Save this article

An Empirical Bayes Approach to Combining and Comparing Estimates of the Value of a Statistical Life for Environmental Policy Analysis

Author

Listed:
  • Ikuho Kochi
  • Bryan Hubbell
  • Randall Kramer

    ()

Abstract

An empirical Bayes pooling method is used to combine and compare estimates of the value of a statistical life (VSL). The data come from 40 selected studies published between 1974 and 2002, containing 197 VSL estimates. The estimated composite distribution of empirical Bayes adjusted VSL has a mean of $5.4 million and a standard deviation of $2.4 million. The empirical Bayes method greatly reduces the variability around the pooled VSL estimate. The pooled VSL estimate is influenced by the choice of valuation method, study location, and union status of sample but not to the source of data on occupational risk or the consideration of non-fatal risk injury. Copyright Springer 2006

Suggested Citation

  • Ikuho Kochi & Bryan Hubbell & Randall Kramer, 2006. "An Empirical Bayes Approach to Combining and Comparing Estimates of the Value of a Statistical Life for Environmental Policy Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(3), pages 385-406, July.
    • Handle: RePEc:kap:enreec:v:34:y:2006:i:3:p:385-406
    DOI: 10.1007/s10640-006-9000-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10640-006-9000-8
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Miller, Paul & Mulvey, Charles & Norris, Keith, 1997. "Compensating Differentials for Risk of Death in Australia," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 363-372, December.
    2. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    3. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    4. Sandy, Robert & Elliott, Robert F, 1996. "Unions and Risk: Their Impact on the Level of Compensation for Fatal Risk," Economica, London School of Economics and Political Science, vol. 63(250), pages 291-309, May.
    5. Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-374, June.
    6. Felice Martinello & Ronald Meng, 1992. "Workplace Risks and the Value of Hazard Avoidance," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 333-345, May.
    7. Morley Gunderson & Douglas Hyatt, 2001. "Workplace risks and wages: Canadian evidence from alternative models," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 377-395, May.
    8. Dickens, William T, 1984. "Differences between Risk Premiums in Union and Nonunion Wages and the Case for Occupational Safety Regulation," American Economic Review, American Economic Association, vol. 74(2), pages 320-323, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    value of a statistical life (VSL); empirical Bayes estimate; environmental policy; health policy; contingent valuation method; hedonic wage method; J17; C11; Q28;

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:34:y:2006:i:3:p:385-406. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.