Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73979
Authors: 
Alberini, Anna
Tonin, Stefania
Turvani, Margherita
Chiabai, Aline
Year of Publication: 
2006
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 113.2006
Abstract: 
We use conjoint choice questions to investigate people’s preferences for income and reductions in mortality risks delivered by contaminated site remediation policies. Our survey is self-administered using the computer by residents of four cities in Italy with severely contaminated sites. We estimate the Value of a Statistical Life to be about €5.6 million for an immediate risk reduction. If the risk reduction takes place 20 years from now, however, the implied VSL is about €1.26 million. The discount rate implicit in the responses to the conjoint choice questions is about 7%. People are willing to pay for permanent risk reductions, but not just any amount. Risk reductions in the nearer future are valued more highly than risk reductions in the more distant future. We also find that the VSL is “individuated,” in the sense that it depends on observable individual characteristics of the respondents, familiarity with contaminated sites, concern about the health effects of exposure to toxicants, having a family member with cancer, perceived usefulness of possible government actions, and the respondent’s beliefs about the goals of government remediation programs. Additional questions suggest that respondents discount lives, and do so at a discount rate in the ballpark of that implicit in their risk v. money tradeoffs.
Subjects: 
Value of a Statistical Life
Latent Risk Reductions
Individual Discount Rates
Conjoint Choice Questions
Contaminated Sites
Remediation
JEL: 
J17
I18
K32
Q51
Q53
Document Type: 
Working Paper

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