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Robust estimates of value of a statistical life for developing economies

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  • Bowland, Bradley J.
  • Beghin, John

Abstract

Environmental economists use the value-of-statistical-life (VSL) approach to value mortality changes resulting from environmental improvement. Because of scarce data, VSL estimates are unavailable for most developing countries. Using robust regression techniques, we conduct a meta-analysis of VSL studies in industrialized countries to derive a VSL prediction function for developing economies accounting for differences in risk, income, human capital levels, and other demographic characteristics of these economies. We apply our estimated VSL to assess the willingness to pay for reduction in mortality linked to air pollution in Santiago, Chile. We find willingness-to-pay estimates in the range of 1992 purchasing power parity (PPP) $519,000–675,000 per life.

Suggested Citation

  • Bowland, Bradley J. & Beghin, John, 2001. "Robust estimates of value of a statistical life for developing economies," ISU General Staff Papers 200101010800001237, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200101010800001237
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    1. Alberini, Anna & Krupnick, Alan, 1998. "Air Quality and Episodes of Acute Respiratory Illness in Taiwan Cities: Evidence from Survey Data," Journal of Urban Economics, Elsevier, vol. 44(1), pages 68-92, July.
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    5. Brad J. Bowland & John C. Beghin, 1998. "Robust Estimates of Value of a Statistical Life for Developing Economies: An Application to Pollution and Mortality in Santiago," Center for Agricultural and Rural Development (CARD) Publications 99-wp214, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    6. Viscusi, W Kip, 1993. "The Value of Risks to Life and Health," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1912-1946, December.
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    8. Desvouges, William H. & Naughton, Michael C. & Parsons, George R., 1992. "Benefits transfer: conceptual problems in estimating water quality benefits using existing studies," MPRA Paper 36405, University Library of Munich, Germany.
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    10. Alberini, Anna & Cropper, Maureen & Fu, Tsu-Tan & Krupnick, Alan & Liu, Jin-Tan & Shaw, Daigee & Harrington, Winston, 1997. "Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 107-126, October.
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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