We develop a numerical life-cycle model with choice over consumption and leisure, stochastic mortality and labor income processes, and calibrated to U.S. data – to characterize willingness to pay (WTP) for mortality risk reduction. Our theoretical framework can explain many empirical findings in this literature, including an inverted-U life-cycle WTP and an order of magnitude difference in prime-aged adults WTP. By endogenizing leisure and employing multiple income measures, we reconcile the literature's large variation in estimated income elasticities. By accounting for gender- and race-specific stochastic mortality and income processes, we explain the literature's black-white and female-male differences.
Media Highlight — Jan 27, 2023
Bloomberg: "Air and Climate Standards Top EPA's 2023 Rulemaking To-Do List"
Comments made by EPA Deputy Administrator Janet McCabe during RFF's Big Decisions 2023 event in January feature heavily in a story about EPA priorities.
Resources Radio — Jan 10, 2023
Does Cap and Trade Exacerbate Environmental Injustice in California?, with Danae Hernández-Cortés
Danae Hernández-Cortés discusses how California’s cap-and-trade program affects levels of air pollution in environmental justice communities.
Resources Magazine — Oct 19, 2022
Air Pollution Exposure in New York City Schools
Beia Spiller discusses how community-engaged research produces new knowledge, informs policymaking, and benefits communities that are engaged in the research.
On the Issues — Oct 7, 2022
On the Issues: International Trade, World Carbon Pricing Database, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: international trade, World Carbon Pricing Database, and more.