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Policy Challenges Of The Heterogeneity Of The Value Of Statistical Life, W. Kip Viscusi
Policy Challenges Of The Heterogeneity Of The Value Of Statistical Life, W. Kip Viscusi
Vanderbilt Law School Faculty Publications
Economic research has developed estimates of the heterogeneity of the value of statistical life (VSL) on dimensions such as individual age, income, immigrant status, and the nature of the risk exposure. This paper examines the empirical evidence on the heterogeneity of VSL and explores the potential implications for the valuation of regulatory policies. Previously, the U.S. Environmental Protection Agency (EPA) unsuccessfully sought to adopt a simple age discount percentage for VSL based on survey evidence. However, labor market estimates of VSL indicate a pattern that tracks lifetime consumption trajectories, as the VSL rises with age and eventually tapers off but …
Are Risk Regulators Rational? Evidence From Hazardous Waste Cleanup Decisions, W. Kip Viscusi, James Hamilton
Are Risk Regulators Rational? Evidence From Hazardous Waste Cleanup Decisions, W. Kip Viscusi, James Hamilton
Vanderbilt Law School Faculty Publications
Using original data on the cleanup of 130 hazardous waste sites, we examine the degree Superfund decisions are driven by efficiency concerns, biases in risk perceptions, and political factors. Target risk levels chosen by regulators are largely a function of political variables and risk perception biases. Regulators exhibit biases consistent with anchoring and the availability heuristic, and do not distinguish between current risks to actual residents and potential risks to hypothetically exposed populations. Quantile regressions indicate that political factors affect decisions on the cost per case of cancer averted, especially for the most inefficient cleanup efforts.