Value of a life year (VOLY)
|Moderator:Virpi Kollanus (see all)|
What is the monetary value of a statistical life year derived from studies on societal willingness to pay (WTP) for mortality risk reductions?
ExternE 2005 
Results are based on a contingent valuation study (NewExt) on changes in life-expectancy conducted simultaneously in France, UK, and Italy. The objective of the study was to derive monetary unit value for the incidence of premature death resulting from air pollution in Europe. The survey protocol included people over the age of 40, with 1/3 of these above the age of 60.
- Chronic exposure mortality impacts (death after 10 years of exposure, 3% discount rate applied)
- Upper bound: €151 110
- Mean: €125 250
- Median: €55 800 (rounded to €50 000, recommended central estimate)
- Lower bound: €18 250
- Acute exposure mortality impacts (immediate death, assumed that the victim's health condition is not a factor in WTP, no discount applied)
- Upper bound: €225 000
- Median: €75 000
- Lower bound: €27 240
- A Weibull distribution is assumed because it had the best fit to the data
- Upper and lower bounds are considerably less robust than the central estimates
Values used in CAFE CBA 2005 
Values are based on the NewExt study, price year 2000
- Chronic exposure mortality impacts
- Median: €52 000
- Mean: €120 000
NEEDS 2006 
Recommended mean VOLY estimates for Europe:
- EU15 + Switzerland €41 000
- New member countries €33 000
- EU25 €40 000
Desaigues et al. 2011:
- Contingent valuation study on the monetary value of a life year in EU in the air pollution context.
- The result is based on a survay conducted in 9 European countries: France, Spain, UK, Denmark, Germany, Switzerland, Czech Republic, Hungary, and Poland.
- Recommended VOLY estimate for cost-benefit analysis of air pollution policies for the European Union is 40 000 €.
- Suggested confidence interval: lower limit 25 000 €, upper limit 100 000 €.
VOLY is expected to vary from country to country due to income levels and cultural valuations.
euro/one statistical life year
A rough compilation is done of the above-mentioned ranges.
Stepwise uniform: (cumulative probabilities 0, 0.05, 0.25, 0.5, 0.75, 0.95, 1)(18250, 27240, 41000, 52000, 75000, 125250, 151110)
- European Commission 2005. ExternE, Externalities of Energy, Methodology 2005 Update. Bickel P & Friedrich R (Eds.)
- Service Contract for Carrying out Cost-Benefit Analysis of Air Quality Related Issues, in particular in the Clean Air for Europe (CAFE) Programme. Volume 2: Health Impact Assessment. AEA Technology Environment, 2005.
- Desaigues et al. 2006. Final report on the monetary valuation of mortality and morbidity risks from air pollution. Ned Energy Externalities Developments for Sustainability (NEEDS). Sixth framework programme, Project no: 502687.
- Desaigues et al. 2011. Economic valuation of air pollution mortality: A 9-country contingent valuation survey of value of a life year (VOLY). Ecological Indicators 11, 902-910.