Estimating the Implicit Value of a Young Child's Life

Carlin, Paul S.; Sandy, Robert

doi:10.2307/1060042

Cited by 49 publications

(22 citation statements)

References 18 publications

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“…The VSL is $1.33 million in 1991 dollars for helmet use. Carlin and Sandy (1991) collected data on mothers' decisions on car seat usage from ten cities in Indiana and estimated a VSL for a child of $ 0.42 million 1985 dollars. Jenkins, Owens and Wiggins (2001) calculate the VSL for adults and children using data on the purchase of bicycle safety helmets.…”

Section: Averting Behavior Studiesmentioning

confidence: 99%

The value of mortality risk reductions in Delhi, India

2007

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Road accidents kill nearly 1.2 million people each year worldwide, two-thirds of whom live in developing countries. Traffic crashes may indeed become the third leading cause of death in developing countries by the year 2020 (Murray and Lopez, 1996). For governments in developing countries to make informed decisions about investments in traffic safety, it is imperative that the benefits of road traffic improvements be monetized and compared with costs. This, however, requires estimates of the value of reductions in risk of death.The goal of the dissertation is to provide estimates of the value of mortality risk reductions in a traffic safety context in Delhi, India. To estimate the value of road safety improvements in Delhi requires understanding the nature of developing country traffic risks. Methods of valuing traffic fatalities used in high-income countries based on seatbelt use or purchase of safer cars are not applicable here.In my survey I asked 1200 commuters what they would pay to reduce their own risk of dying as a (a) pedestrian, (b) driver of a two-wheeler, and (c) commuter, regardless of travel mode. These scenarios mirror the bulk of fatal accidents in Delhi. I find that mean WTP for mortality risk reduction increases with the size of risk reduction, as predicted by economic theory.WTP for a given risk change increases with income and education. The estimation results broadly confirm the Bayesian updating assumption, in that WTP increases with baseline exposure to risk, measured by commute time, whether the respondent travels as part of his job and whether he drives a two-wheeler. Mean WTP is three times larger for a respondent who drives a two-wheeler and travels on the job than for one who does not.The results of my survey indicate that the VSL is individuated, i.e., it varies across groups of potential beneficiaries of traffic safety programs (two-wheeler drivers, persons with bachelors degree, etc.). For the most highly exposed individuals-the VSL is about $150,000 (PPP, 2005

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Section: Averting Behavior Studiesmentioning

confidence: 99%

The value of mortality risk reductions in Delhi, India

2007

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“…Carlin and Sandy ( 12 ) estimate the value of a statistical child's life by observing car‐seat usage by mothers of young children. They develop an expected utility model in which the mother's utility depends on a number of variables, including the child life‐saving activity and a comprehensive variable reflecting the joys and toils of child rearing.…”

Section: From Whom Should We Elicit Values For Risk Reductions To mentioning

confidence: 99%

Valuation of Childhood Risk Reduction: The Importance of Age, Risk Preferences, and Perspective

Dockins

Jenkins²,

Owens³

et al. 2002

Risk Analysis

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This article explores two problems analysts face in determining how to estimate values for children's health and safety risk reductions. The first addresses the question: Do willingness-to-pay estimates for health risk changes differ across children and adults and, if so, how? To answer this question, the article first examines the potential effects of age and risk preferences on willingness to pay. A summary of the literature reporting empirical evidence of differences between willingness to pay for adult health and safety risk reductions and willingness to pay for health and safety risk reductions in children is also provided. The second dimension of the problem is a more fundamental issue: Whose perspective is relevant when valuing children's health effects-society's, children's, adults-as-children, or parents'? Each perspective is considered, followed ultimately by the conclusion that adopting a parental perspective through an intrahousehold allocation model seems closest to meeting the needs of the estimation problem at hand. A policy example in which the choice of perspective affects the outcome of a regulatory benefit-cost analysis rounds out the article and emphasizes the importance of perspective.

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“…In contrast to the study of bicycle helmet use, Blomquist, Miller, and Levy (1996) and Paul S. Carlin and Robert Sandy (1991) estimate VSL based on statistical analysis of individual micro data that provides evidence of rationality of users of protective equipment. Blomquist, Miller, and Levy incorporate disutility costs associated with use of equipment and estimate VSLs for the typical users rather than upper or lower bounds for users.…”

Section: A Review Of Recent Studies Of Averting Behavior In Consumptionmentioning

confidence: 99%

“…The review of recent studies shown in Table 2 includes four that estimate VSL for special groups. Carlin and Sandy (1991) analyze mothers' use and nonuse of child safety seats for their children. Based on their analysis they find that their estimates of time and money use costs and external estimates of the reduction in mortality risks for the children imply a VSL for children of approximately $0.8 million in 2000 dollars.…”

Section: Childrenmentioning

confidence: 99%

Self-Protection and Averting Behavior, Values of Statistical Lives, and Benefit Cost Analysis of Environmental Policy

Blomquist

2004

Review of Economics of the Household

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Abstract. Situations in which risk is at least partly a matter of choice provide opportunities to analyze behavior and estimate the willingness to pay for small changes in mortality risks. Individuals engage in household production of health and safety as long as the value of the gain in risk reduction is worth the money, time, and any disutility necessary to produce the reduction in risk. This paper reviews values of statistical life inferred from choices about highway speeds, traveler use of protective equipment, crashworthiness of motor vehicles, and housing location near Superfund sites. The best estimates, close to $4 million in year 2000 dollars, are valuable complements to estimates from labor and constructed markets. Interestingly some evidence suggests that values for children and seniors are not less than middle-aged adults. Issues of risk perception and other challenges related to estimation are discussed.

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Estimating the Implicit Value of a Young Child's Life

Cited by 49 publications

References 18 publications

The value of mortality risk reductions in Delhi, India

The value of mortality risk reductions in Delhi, India

Valuation of Childhood Risk Reduction: The Importance of Age, Risk Preferences, and Perspective

Self-Protection and Averting Behavior, Values of Statistical Lives, and Benefit Cost Analysis of Environmental Policy

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