Comments on: What is the Value of a Human Life? http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Fri, 25 May 2012 23:08:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: deepali http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-165167 deepali Wed, 16 Jul 2008 15:16:11 +0000 http://www.consumerismcommentary.com/?p=3413#comment-165167 It is interesting. It would make sense that they would (given that they are using employment data and values). And it also makes sense that it would create controversy. What is also interesting is the way they used only 2 studies to come up with the value. I need more data than that! It is interesting. It would make sense that they would (given that they are using employment data and values). And it also makes sense that it would create controversy.

What is also interesting is the way they used only 2 studies to come up with the value. I need more data than that!

]]> By: Flexo http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-165012 Flexo Tue, 15 Jul 2008 21:46:35 +0000 http://www.consumerismcommentary.com/?p=3413#comment-165012 Deepali: There are many ways to determine the value, but it is interesting to note that the EPA, in the calculation cited above, does *not* differentiate for age. The $6.9 million figure is used whether a life is 2 months old or 98 years old. See the final article of the AP article linked above. The EPA *tried* to differentiate for age several years ago but reversed itself after it created controversy. Deepali: There are many ways to determine the value, but it is interesting to note that the EPA, in the calculation cited above, does *not* differentiate for age. The $6.9 million figure is used whether a life is 2 months old or 98 years old. See the final article of the AP article linked above. The EPA *tried* to differentiate for age several years ago but reversed itself after it created controversy.

]]> By: deepali http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-165011 deepali Tue, 15 Jul 2008 21:33:27 +0000 http://www.consumerismcommentary.com/?p=3413#comment-165011 Well, that's not the only calculation - there's an entire risk analysis portfolio done (ie, issues related to the hazard, technology, clean-up, etc). But cost-benefit analysis is an important component, and in order to make financial comparisons, it stands to reason that lives would have some dollar value. The number isn't entirely set, either - it depends on how old the person is (thus a value is set for 'years of potential life lost') and whether the life will be saved now or in the future (ie, will there be discounting?). Some consideration is involved in terms of type of employment of potential victims (and thus what they can contribute to economy or how vital the jobs are). Usually when I do calculations like this, I get to use numbers under $1 million... Well, that’s not the only calculation – there’s an entire risk analysis portfolio done (ie, issues related to the hazard, technology, clean-up, etc).

But cost-benefit analysis is an important component, and in order to make financial comparisons, it stands to reason that lives would have some dollar value. The number isn’t entirely set, either – it depends on how old the person is (thus a value is set for ‘years of potential life lost’) and whether the life will be saved now or in the future (ie, will there be discounting?). Some consideration is involved in terms of type of employment of potential victims (and thus what they can contribute to economy or how vital the jobs are).

Usually when I do calculations like this, I get to use numbers under $1 million…

]]> By: plonkee http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-164883 plonkee Tue, 15 Jul 2008 12:40:46 +0000 http://www.consumerismcommentary.com/?p=3413#comment-164883 I think it's a reasonable methodology for determining the value of life in $. Since it has to be done anyway (maths with infinities in gets too complicated) why not? Of course in a joined up government, you'd expect different departments and agencies to be working from the same number, but who lives in a country with a joined up government? I think it’s a reasonable methodology for determining the value of life in $. Since it has to be done anyway (maths with infinities in gets too complicated) why not?

Of course in a joined up government, you’d expect different departments and agencies to be working from the same number, but who lives in a country with a joined up government?

]]> By: Transcendental Success http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-164567 Transcendental Success Mon, 14 Jul 2008 13:29:14 +0000 http://www.consumerismcommentary.com/?p=3413#comment-164567 It sounds like it is American taxpayers funding intiiatives that protect their own lives, at rates that they would themselves find attractive on average indicated by a survey asking them how much money they need to make to take life-threatening risks. Surprisingly it makes total sense to me. It solves the problem of "nothing being too good for me as long as somebody else pays for it". It sounds like it is American taxpayers funding intiiatives that protect their own lives, at rates that they would themselves find attractive on average indicated by a survey asking them how much money they need to make to take life-threatening risks. Surprisingly it makes total sense to me. It solves the problem of “nothing being too good for me as long as somebody else pays for it”.

]]> By: Anca http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-164416 Anca Mon, 14 Jul 2008 03:38:13 +0000 http://www.consumerismcommentary.com/?p=3413#comment-164416 "Is the Environmental Protection Agency serving a political agenda?" Well, yeah. That's not surprising given that the person in charge of the EPA is appointed by the president. Also, from wikipedia: "An extensive online questionnaire responded by 1600 EPA staff scientists who have worked in the agency for more than 10 years has determined that they have been pressured to skew their findings..." “Is the Environmental Protection Agency serving a political agenda?”

Well, yeah. That’s not surprising given that the person in charge of the EPA is appointed by the president. Also, from wikipedia: “An extensive online questionnaire responded by 1600 EPA staff scientists who have worked in the agency for more than 10 years has determined that they have been pressured to skew their findings…”

]]> By: MattJ http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-164233 MattJ Sun, 13 Jul 2008 15:26:06 +0000 http://www.consumerismcommentary.com/?p=3413#comment-164233 The FAA (for security purposes) uses a value of $2.7 million as the value of a human life. http://fast.faa.gov/Riskmgmt/Secriskmgmt/secriskmgmt.htm My recollection is that they use an even smaller value when they do cost-benefit analysis as regards aircraft safety. Here's an FAA document discussing the cost/benefit analysis for airworthiness that places the value at $1.5 million, but it's from 1991. They've probably raised it significantly since then. http://rgl.faa.gov/Regulatory_and_Guidance_Library/rgFinalRule.nsf/0/6adef6acc8cb816286256804004f070a!OpenDocument I once read somewhere that the EPA puts the highest dollar amount on the value of a human life of any govt. agency, but that may no longer be true. The FAA (for security purposes) uses a value of $2.7 million as the value of a human life.

http://fast.faa.gov/Riskmgmt/Secriskmgmt/secriskmgmt.htm

My recollection is that they use an even smaller value when they do cost-benefit analysis as regards aircraft safety. Here’s an FAA document discussing the cost/benefit analysis for airworthiness that places the value at $1.5 million, but it’s from 1991. They’ve probably raised it significantly since then.

http://rgl.faa.gov/Regulatory_and_Guidance_Library/rgFinalRule.nsf/0/6adef6acc8cb816286256804004f070a!OpenDocument

I once read somewhere that the EPA puts the highest dollar amount on the value of a human life of any govt. agency, but that may no longer be true.

]]> By: Benjamin http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-164130 Benjamin Sun, 13 Jul 2008 05:29:19 +0000 http://www.consumerismcommentary.com/?p=3413#comment-164130 I wonder if this is the same "guidline" that the Alcohol, Tobacco, and Firearms Administration uses in instituting their policies? I wonder if this is the same “guidline” that the Alcohol, Tobacco, and Firearms Administration uses in instituting their policies?

]]> By: UH2L http://www.consumerismcommentary.com/what-is-the-value-of-a-human-life/comment-page-1/#comment-164013 UH2L Sat, 12 Jul 2008 17:56:35 +0000 http://www.consumerismcommentary.com/?p=3413#comment-164013 With the devaluation of the dollar, the reduction makes even less sense, but then, if you think about humans as a commodity and there are more of us now, then it makes sense. :-) This whole business of valuing human life is rough and seems wrong no matter how you do it, but it's necessary for agencies like the EPA who have to evaluate economic impact. But the idea of valuing American lives higher than other lives troubles me. With the devaluation of the dollar, the reduction makes even less sense, but then, if you think about humans as a commodity and there are more of us now, then it makes sense. :-)

This whole business of valuing human life is rough and seems wrong no matter how you do it, but it’s necessary for agencies like the EPA who have to evaluate economic impact. But the idea of valuing American lives higher than other lives troubles me.

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