(5) Consider an air pollutant to which 300 million people are exposed. The current annual mortality risk from exposure to the pollution is 1 in 150,000. A policy to reduce emissions of the pollutant is expected to cut this risk in half to 1 in 300,000. A study reveals that the average willingness to pay for this mortality risk reduction is $20 per person per year. What is the implied value of a statistical life? Explain how you got your answer

(5) Consider an air pollutant to which 300 million people are exposed. The current annual mortality risk from exposure to the pollution is 1 in 150,000. A policy to reduce emissions of the pollutant is expected to cut this risk in half to 1 in 300,000. A study reveals that the average willingness to pay for this mortality risk reduction is $20 per person per year. What is the implied value of a statistical life? Explain how you got your answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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