Environmental Economics

Mortality Effects of Regulatory Costs and Policy Evaluation Criteria

This journal article argues that risk regulations directly reduce risks, but that they may produce offsetting risk increases. Regulated risks generate a substitution effect, as individuals' risk-averting actions will diminish. Recognition of these effects alters benefit-cost criteria and the value-of-life estimate pertinent to policy analysis. Particularly expensive risk regulations may be counterproductive. The expenditure level that will lead to the loss of one statistical life equals the value of life divided by the marginal propensity to spend on health. Regulations with a cost of $30 million to $70 million per life saved will, on balance, have a net adverse effect on mortality because of these linkages. The reference to the journal article can be found under published output above.

  • Keywords

    Subject:
    2. Cost-Benefit and Cost Effectiveness Analysis
    2. Cost-Benefit and Cost Effectiveness Analysis - Major Programs and Media
    Environmental Media:
    f. Multimedia
    Authors:
    Viscusi, W. Kip
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Empirical Application, Data Development
    Inventory Record #: PE-0025
  • Participating Organizations

    Research Organization:

    Duke UniversityAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Planning, and EvaluationAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    03/01/1994
    Number of Pages:
    16
    Comment:
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