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A Critical Evaluation of Current Approaches to Life Valuation in Cost/Benefit Analysis
RACHEL DARDIS,
RACHEL DARDIS
Rachel Dardis is Professor, Department of Textiles and Consumer Economics, University of Maryland.
Search for more papers by this authorRACHEL DARDIS,
RACHEL DARDIS
Rachel Dardis is Professor, Department of Textiles and Consumer Economics, University of Maryland.
Search for more papers by this authorUniversity of Maryland Agricultural Experiment Station Article number A-2795.
Abstract
The continuing debate concerning the valuation of human life has left the measurement of benefits from health and safety programs unresolved. This has important policy implications since a comparison of the costs and benefits of such programs is necessary if society is to use its limited resources in the most effective manner. This paper reviews various methods of life valuation including societal valuation, human capital and willingness to pay. The establishment of a set of criteria for assessing life valuation measures leads to the conclusion that foregone consumption might be an appropriate measure. This measure is not intended to reflect the value of life to the individual which may be incommensurable, but rather to represent the value of additional statistical life years to society as a whole.
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