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Analysis (any type)
02/10/2021
Valuation of a Statistical Life: Compute the VSLs for the various scenarios below.
a. A neighborhood of 10 houses collectively decides to have radon checks for each house, which cost $20 per house and will reduce chance of radon poisoning death by 0.01%
b. Bill works as an accountant making $50,000 per year. Kelly works as a welder making $75,000 per year. Bill is also a skilled welder, while Kelly also has a CPA license. Kelly is 0.002% more likely to die on the job.
c. After performing a Hedonic Pricing study it is found that for every 1% reduction in mortality risk from air pollution, that a house rises in price by $10,000.
d. A company spends $1,000,000 annually to scrub particulate matter from their smoke stacks before their emissions are sent into the regional air stock. The subsequent reduction in particulate matter reduces the regional mortality rate from 1 person in 100,000 to 1 person in 200,000.
e. Suppose that the additional cost of all cigarette taxes in a given year is $1,000,000,000. It is estimated that cigarette taxes reduce the take-up rate of cigarette smoking from 1 person in 10 to 1 person in 25.
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Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
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