Abstract
In a comment on an article in Journal of Consumer Policy by Don Kenkel, the author questions the suggestion in the previous article that estimates of the value of a statistical life should regularly be based on the WTP (willingness to pay) approach. There is much evidence of large disparities between valuations using the WTP and the WTA (willingness to accept) approaches, and using the WTP measure may in some cases lead to biased levels of regulatory control of harmful outcomes.
Similar content being viewed by others
REFERENCES
Horowitz, J. K., & McConnell, K. E. (2002). A review of WTA/WTP studies. Journal of Environmental Economics and Management, 44, 426–447.
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1990). Experimental tests of the endowment effect and the Coase theorem. Journal of Political Economy, 98, 1325–1348.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47, 263–291.
Kenkel, D. (2003). Using estimates of the value of a statistical life in evaluating consumer policy regulations. Journal of Consumer Policy, 26, 1–21.
Michelman, F. I. (1967). Property, utility, and fairness: Comments on the ethical foundations of “just compensation.” Harvard Law Review, 80, 1165–1258.
Pearce, D. W., & Seccombe-Hett, T. (2000). Economic valuation and environmental decision-making in Europe. Environmental Science and Technology, 34, 1419–1425.
U.S. Environmental Protection Agency (2000). Guidelines for preparing economic analyses. Washington, DC: U.S. Environmental Protection Agency.
Viscusi, W. K., Magat, W. A., & Huber, J. (1987). An investigation of the rationality of consumer valuations of multiple risks. Rand Journal of Economics, 18, 465–489.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Knetsch, J.L. Valuing Statistical Lives: The Choice of Measure Also Matters. Journal of Consumer Policy 27, 99–104 (2004). https://doi.org/10.1023/B:COPO.0000014098.96516.c8
Issue Date:
DOI: https://doi.org/10.1023/B:COPO.0000014098.96516.c8