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Discount Rate for Health Benefits and the Value of Life in India

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  • K. R. Shanmugam

Abstract

This study contributes to the literature by estimating discount rate for environmental health benefits and value of statistical life of workers in India. The discount rate is imputed from wage-risk trade-offs in which workers decide whether to accept a risky job with higher wages. The estimated real discount rate ranges between 2.7 and 3 percent, which is closer to the financial market rate for the study period and consistent with earlier studies from developed nations. The estimated value of life is Rs. 20 (US $ 1.107) million. The results of the study can aid policymakers, international agencies and other researchers in evaluating health projects in India and other developing countries. [WORKING PAPER 60/2011]. URL:[http://www.mse.ac.in/pub/WORKING%20PAPER%2060.pdf].

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  • K. R. Shanmugam, 2011. "Discount Rate for Health Benefits and the Value of Life in India," Working Papers id:4524, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4524
    Note: Institutional Papers
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    6. R. A. Sharma & M. J. McGregor & J. F. Blyth, 1991. "The Social Discount Rate For Land‐Use Projects In India," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 86-92, January.
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    14. Moore, Michael J. & Viscusi, W. Kip, 1990. "Discounting environmental health risks: New evidence and policy implications," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 51-62, March.
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    Cited by:

    1. Hutton, Guy & Patil, Sumeet & Kumar, Avni & Osbert, Nicolas & Odhiambo, Francis, 2020. "Comparison of the costs and benefits of the Clean India Mission," World Development, Elsevier, vol. 134(C).
    2. Agamoni Majumder & S. Madheswaran, 2022. "Discounting Long-Term Job-Related Health Risks in the Context of Indian Workers," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 1099-1120, December.

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    More about this item

    Keywords

    Expected length of life; value of statistical life; time preference rate; India; developing countries; policymakers; international agencies; researchers; health projects; developed nations; international agencies; value of life; workers; wages; health benefits; wage-risk; trade-offs; Economic analyses; life saving policies; discount rate;
    All these keywords.

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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