Measuring The Benefits Of Risk Reduction In Program Evaluations And Regulatory Impact Assessments

The risk of death is affected by a wide variety of public policies and regulations. This paper argues that societal willingness to pay for risk reduction should be used in a consistent manner when evaluating programs and regulations affecting the risk of death. We review the conceptual basis for using estimates of willingness to pay for risk reduction and provide new empirical estimates of these magnitudes based on Canadian data. The explicit and consistent measure that we propose can promote both efficiency and equity in the use of society's resources.