EPA Science Advisory Board (SAB)

Valuing mortality risk reductions for policy: proposed updates to valuation and income elasticity estimates

EPA Designated Federal Officer (DFO):Thomas Armitage
202-564-2155
armitage.thomas@epa.gov
Responsible Committee/Panel:Environmental Economics Advisory Committee

See EPA’s PDF page to learn more about PDF files.


BACKGROUND
EPA is asking for feedback on proposed improvements to the agency’s methodology for estimating benefits associated with reduced risk of mortality. This methodology, which is used in regulatory benefit-cost analyses, takes into account the amounts that individuals are willing to pay for small reductions in mortality risk. The resulting values are combined into an estimate commonly known as the “Value of Statistical Life (VSL).” EPA is also asking the SAB to review options for accounting for changes in the VSL over time as real income grows, known as “income elasticity” of willingness to pay. After taking this input into account EPA expects to incorporate revised guidance on these matters into the Agency’s Guidelines for Preparing Economic Analysis.

Agency Charge . (PDF, 5 pp., 122,371 bytes)

Agency Review Document(s):

PDF for Valuing Mortality Risk Reductions for Policy: . (PDF, 77 pp., 958,658 bytes)

PDF for a Meta-analytic Approach (February 2016) . (PDF, 42 pp., 429,637 bytes)

PDF for The Effect of Income on the Value of Mortality and Morbidity Risk Reductions. (PDF, 4 pp., 139,808 bytes)

PDF for Recommended Income Elasticity and Income Growth Estimates: Technical Memorandum. (PDF, 4 pp., 139,808 bytes)