Valuing non-marginal changes in mortality and morbidity risk.

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Publisher: Elsevier B.V.
Document Type: Report; Brief article
Length: 361 words

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Keywords Value per statistical life; Value per statistical case; Non-marginal risks reductions; Scope sensitivity Abstract Many stated-preference studies that seek to estimate the marginal willingness-to-pay (WTP) for reductions in mortality or morbidity risk suffer from inadequate scope sensitivity. One possible reason is that the risk reductions presented to respondents are too small to be meaningful. Survey responses may thus not accurately reflect respondents preferences for health and safety. In this paper we propose a novel approach to estimating the value per statistical life (VSL) or the value per statistical case (VSC) based on larger risk reductions measurable as percent changes. While such non-marginal risk reductions are easier to understand, they introduce well known biases. We propose a methodology to de-bias VSL and VSC estimates derived from the evaluation of non-marginal risk reductions and present a proof of concept using simulated stated preference data. Author Affiliation: (a) Université Paris-Dauphine, PSL Research University, LEDa (CGEMP) UMR CNRS, 8007, France (b) Risk Management Directorate, European Chemicals Agency (ECHA), Finland (c) Harvard University (Center for Risk Analysis), United States (d) Toulouse School of Economics, University of Toulouse Capitole, France * Corresponding author. Article History: Received 20 September 2021; Revised 11 March 2022; Accepted 28 April 2022 (footnote)[white star] This paper is dedicated to Michael Jones-Lee who had a keen interest in this topic but sadly passed away on 22nd February 2021. We benefited from comments and suggestions received at the 2019 Harvard Center for Risk Analysis workshop on Risk Assessment, Economic Evaluation, and Decisions, as well as the 2021 SBCA and EAERE conferences. We also benefited from the comments of Anna Alberini, Nicolas Treich, Jérôme Mathis and Henrik Andersson. James K. Hammitt acknowledges funding from the U.S. National Science Foundation (award number 1824492) and the French National Research Agency (ANR) under the Investments for the Future program (Investissements d'Avenir, grant ANR-17-EURE-0010). Daniel Herrera-Araujo acknowledges financial support by the French National Research Agency (ANR) through the VHEALTH project, award number ANR-20-CE36-0010-01. The views expressed in this paper are those of the authors and do not represent official positions of the European Chemicals Agency. Byline: Daniel Herrera-Araujo [daniel.herrera@dauphine.psl.eu] (*,a), Christoph M. Rheinberger (b), James K. Hammitt (c,d)

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Gale Document Number: GALE|A709525727