The value of mortality risk reduction is an important component of the benefits of environmental policies. In recent years, the number, scope, and quality of valuation studies have increased dramatically. Revealed preference studies of wage compensation for occupational risks, on which analysts have primarily relied, have benefited from improved data and statistical methods. Stated preference research has improved methodologically and expanded dramatically. Studies are now available for several health conditions associated with environmental causes, and researchers have explored many issues concerning the validity of the estimates. With the growing numbers of both types of studies, several meta-analyses have become available that provide insight into the results of both methods. Challenges remain, including better understanding of the persistently smaller estimates from stated preference than from wage differential studies and of how valuation depends on the individual’s age, health status, and characteristics of the illnesses most frequently associated with environmental causes.
Maureen L. Cropper
Two New Reports and a Blog on Vehicle Issues
How Do Fuel Economy Standards Affect Consumer Welfare and Manufacturer Profits?
Fuel economy valuation varies substantially across consumer groups, and that this variation determines how the standards affect individual demographic groups and manufacturers.
Pass-Through and Welfare Effects of Regulations that Affect Product Attributes
We show that the relationship between pass-through and welfare changes does not hold for a regulation that affects production costs and product attributes.