Monetary Values for Air Pollution Risk of Death: A Contingent Valuation Survey

Olivier Chanel (1) , Stephane Luchini (1)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille

In this paper, we extend the individual dynamic model of life-time resource allocation to assess the monetary value given to the increase in survival probabilities of every member of a household induced by improved air quality. We then interpret this monetary value as a flow of Value of Life Years Lost (VOLY), and estimate the corresponding Value of a Prevented Fatality (VPF) for different ages and different household members. Using French contingent valuation data on air pollution, we estimate a mean VOLY of Euros 150,000 and a mean VPF
of Euros 2.15 million. In addition, we find an inverse U-shaped relationship between age and VPF.

Mots clés: Value of statistical life; Air pollution; Familial Altruism; Contingent Valuation

Domaines: Economies et finances

Olivier Chanel, Stephane Luchini. Monetary Values for Air Pollution Risk of Death: A Contingent Valuation Survey. 2008. ⟨halshs-00272776⟩