Unformatted text preview: My value of statistical life lies between %5 and $6.4 million. b. If you were advising the EPA and they said everyone is just like you, what level of risk protection, i.e., A,B,C, D, E, F, or G, would you recommend they provide with this project? Why? Level of Protection Total Number of Lives Saved Marginal Cost per Additional Life Saved A 1 $100,000 B 2 $500,000 C 3 $1,000,000 D 4 $2.500,000 E 5 $5,000,000 F 6 $7,500,000 G 7 $10,000,000 I would choose level E (5 lives saved) as the MB (VSL) of a life lie between $5 and $6.4 million and the MC($7,500,000) of saving a 6 th life (level F) exceed this range. Hence society would be made worse off by saving the 6 th life as MC>MB. For levels A-E the reverse is true: MC<MB....
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- Fall '07
- Economics, C D E F G, statistical life