Synthesizing values of statistical life for energy-environmental policy analysis

Abstract

In energy and environmental investment or policy analysis, the valuation of human health risk is becoming an increasingly important issue. An often used measure of the human health risk is the value of the statistical life. However, estimates of this value tend to vary significantly from one study to another, due to the controversial nature of the problem. We use a recently proposed approach to synthesizing estimates of the value of life given in 19 different studies for the United States. The approach uses the Finite Mixture Distributions statistical technique and the Analytic Hierarchy Process multi-attribute analysis method. In the multi-attribute analysis, we assess the value of life estimates using nine criteria. We present the results obtained, and describe the uncertainty involved and some possible applications of the results.