1887

OECD Environment Working Papers

This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.

English

Measuring the economic value of the effects of chemicals on ecological systems and human health

This paper reviews and discusses the existing methods for placing a value on the effects of chemicals on human health and the environment. It surveys both methods and non-market methods, discussing their advantage and limitations. For example, when valuing non-fatal illnesses, the cost-of-illness approaches captures labour income lost to illness and medical expenditures undertaken to mitigate the illness, but fails to account for the value of the disutility of the illnesses. The paper also discusses mortality risk valuation, and the widely used metric termed the Value of a Statistical Life, the difficulties associated with estimating it, and the appropriateness of any adjustments for futurity, age, and the nature of the risk itself. Finally, the paper takes up the issue whether the source of the health risks (e.g., chemicals versus other forms of pollution versus others) affects how much the public values reducing those risks.

English

Keywords: regulation of chemicals, toxics, non-market valuation, economic valuation, monetised benefits
JEL: K32: Law and Economics / Other Substantive Areas of Law / Environmental, Energy, Health, and Safety Law; Q53: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling; Q57: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology; D61: Microeconomics / Welfare Economics / Allocative Efficiency; Cost-Benefit Analysis; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; Q51: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Valuation of Environmental Effects; J17: Labor and Demographic Economics / Demographic Economics / Value of Life; Forgone Income
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error