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How to correctly assess mortality benefits in public policies

Author

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  • Olivier Chanel

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

  • Pascale Scapecchi

    (OECD - Organisation for Economic Cooperation and Development)

  • Jean-Christophe Vergnaud

    () (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

Abstract

AbstractThis paper concerns the difficulty of taking long-term effects on health into account in an economic valuation. Indeed, public decision makers should incorporate the cessation lag between implementation of an abatement policy and achievement of all of the expected mortality-related benefits for any projects involving health impacts. This paper shows how this time lag problem can be handled by proposing two approaches - either in terms of deaths avoided or of life years saved - within a dynamic perspective. The main findings are that long-term health benefits calculated by standard methods and widely applied to adverse health effects should be corrected downwards when incorporated into an economic analysis. The magnitude of correction depends on the discount rate, on technical choices dealing with epidemiology and on the method chosen to assess mortality benefits.

Suggested Citation

  • Olivier Chanel & Pascale Scapecchi & Jean-Christophe Vergnaud, 2006. "How to correctly assess mortality benefits in public policies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00150092, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00150092
    DOI: 10.1080/09640560600850150
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00150092
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    References listed on IDEAS

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    1. Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521478786.
    2. Anna Alberini & Maureen Cropper & Alan Krupnick & Nathalie Simon, 2006. "Willingness to pay for mortality risk reductions: Does latency matter?," Journal of Risk and Uncertainty, Springer, vol. 32(3), pages 231-245, May.
    3. Krupnick, Alan & Cropper, Maureen & Alberini, Anna & Simon, Nathalie & Itaoka, Kenshi & Akai, Makoto, 1999. "Mortality Risk Valuation for Environmental Policy," Discussion Papers dp-99-47, Resources For the Future.
    4. Hugh Gravelle & Dave Smith, 2001. "Discounting for health effects in cost-benefit and cost-effectiveness analysis," Health Economics, John Wiley & Sons, Ltd., vol. 10(7), pages 587-599.
    5. Johannesson, Magnus & Johansson, Per-Olov, 1997. "Quality of life and the WTP for an increased life expectancy at an advanced age," Journal of Public Economics, Elsevier, vol. 65(2), pages 219-228, August.
    6. Viscusi, W Kip & Hakes, Jahn K & Carlin, Alan, 1997. "Measures of Mortality Risks," Journal of Risk and Uncertainty, Springer, vol. 14(3), pages 213-233, May-June.
    7. Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521472852.
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    Cited by:

    1. Olivier Chanel & Laura Perez & Nino Künzli & Sylvia Medina, 2016. "The hidden economic burden of air pollution-related morbidity: evidence from the Aphekom project," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(9), pages 1101-1115, December.

    More about this item

    Keywords

    air pollution; health effect; lattency effect;

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