Korean J Prev Med.  2003 Aug;36(3):230-238.

Risk-Based Damage Cost Estimation on Mortality Due to Environmental Problems

• Kim YS
• Lee YJ
• Park HS
• Shin DC

Abstract

OBJECTIVES
To estimate the value of statistical life (VSL) and health damage cost on theoretical mortality estimates due to environmental pollution. METHODS: We assessed the health risk on three environmental problems and eight sub-problems. Willingness to pay (WTP) was elucidated from a questionnaire survey with dichotomous contingent valuation method and VSL (which is the division of WTP by the change of risk reduction) calculated from WTP. Damage costs were estimated by multiplying VSL by the theoretical mortality estimates. RESULTS: VSLs from death caused by air pollution, indoor air pollution and drinking water contamination were about 0.3, 0.5 and 0.3 billion won, respectively. Damage costs of particulate matters (PM10) and radon were higher in the sub-problems and were above 100 billion won. Because damage cost depends on theoretical mortality estimate and WTP, its uncertainty is reduced in the estimating process. CONCLUSION: Health damage cost or risk benefit should be considered as one scientific criterion for decision making in environmental policy.

Keyword

Mortality; Cost-benefit analysis; Risk assessment; Environmental pollution

MeSH Terms

Air Pollution
Air Pollution, Indoor
Cost-Benefit Analysis
Decision Making
Drinking Water
Environmental Policy
Environmental Pollution
Methods
Mortality*
Radon
Risk Assessment
Uncertainty
Drinking Water
Radon