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Using the Value of a Statistical Life to Measure the Benefit from the Clean Air Act: Comment

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  • Jon R. Neill

    (Western Michigan University)

Abstract

The benefit-cost study of the Clean Air Act conducted by the EPA a decade ago found that the benefit from that act far exceeds its cost. However, 85% of that benefit came from the EPA's valuation of the lives saved by the act. This valuation was based on estimates of the statistical value of a life, the majority of which were made using a hedonic wage equation. The analysis presented here shows that such a valuation may not accurately capture willingness to pay for improved air quality. In fact, it is only capable of doing so in a very special case, when air quality does not affect the probability of developing non-fatal conditions.

Suggested Citation

  • Jon R. Neill, 2024. "Using the Value of a Statistical Life to Measure the Benefit from the Clean Air Act: Comment," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 52(1), pages 39-44, March.
    • Handle: RePEc:kap:atlecj:v:52:y:2024:i:1:d:10.1007_s11293-024-09796-x
    DOI: 10.1007/s11293-024-09796-x
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    References listed on IDEAS

    as
    1. Neill, Jon R., 2022. "Using consumer’s surplus to bound willingness to pay for non-market goods," Resource and Energy Economics, Elsevier, vol. 67(C).
    2. Tamma Carleton & Amir Jina & Michael Delgado & Michael Greenstone & Trevor Houser & Solomon Hsiang & Andrew Hultgren & Robert E Kopp & Kelly E McCusker & Ishan Nath & James Rising & Ashwin Rode & Hee , 2022. "Valuing the Global Mortality Consequences of Climate Change Accounting for Adaptation Costs and Benefits [Distributive Politics and Economic Growth]," The Quarterly Journal of Economics, Oxford University Press, vol. 137(4), pages 2037-2105.
    3. Viscusi, W. Kip, 2021. "Extending the Domain of the Value of a Statistical Life," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 12(1), pages 1-23, March.
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