Environmental Economics

Risk-Risk Analysis

Constraints on the use of benefit-cost tests have generated increased interest in risk-risk analysis as a regulatory test. The effect on individual mortality of the income losses arising from regulatory expenditures can be determined from direct empirical estimates, which this paper surveys. This paper proposes an alternative formulation based on information on the value of life and the marginal propensity to spend on health, which implies a loss of one statistical life for every $50 million in expenditures represent another type of risk tradeoff that could be considered within risk-risk analysis of a benefit-cost test more generally.

  • Keywords

    Subject:
    2. Cost-Benefit and Cost Effectiveness Analysis
    2. Cost-Benefit and Cost Effectiveness Analysis - Major Programs and Media
    2. Cost-Benefit and Cost Effectiveness Analysis - Methodology
    Environmental Media:
    f. Multimedia
    Authors:
    Viscusi, W. Kip
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Methodology Development & Evaluation
    Inventory Record #: EE-0189
  • Participating Organizations

    Research Organization:

    Duke University, Department of EconomicsAddress:
    City: Durham State: NC ZIP: 27708-0097
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection AgencyAddress:
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    07/23/1993
    Number of Pages:
    28
    Comment:
    Grant/Contract #:
    CA-814388
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    Date Linked: 08/25/2017