Assessing Whether There Is a Cancer Premium for the Value of a Statistical Life
37 Pages Posted: 28 Nov 2012
Date Written: November 20, 2012
This article estimates whether there is a cancer risk premium for the value of a statistical life (VSL) using stated preference valuations of cancer risks for a large, nationally representative U.S. sample. The present value of an expected cancer case that occurs after a one decade latency period is $10.85 million, consistent with a cancer premium that is 21% greater than the median VSL estimates for acute fatalities. This cancer premium is smaller than the premium proposed for policy analyses in the U.K. and the U.S. There is also a greater premium for policies that reduce cancer risks to zero and for risk reductions affecting those who perceive themselves to have a greater than average probability of getting cancer.
Keywords: cancer, value of a statistical life (VSL), stated preference, risk
JEL Classification: I1, I18, J17, K32
Suggested Citation: Suggested Citation