Development of Economic and Mathematical Tools for Analyzing and Evaluating the Value of Life Based on Willingness to Pay for Mortality Risk Reduction (Using Air Pollution as an Example)

This study proposes an approach to assessing the Value of Statistical Life (VSL) based on the contingent valuation of willingness to pay for reducing the risk of mortality caused by air pollution from port activities in port city residents. The research involves data collection through a survey utilizing a double dichotomous choice method. The proposed approach differs from existing ones by introducing a new way of estimating the marginal willingness to pay for each additional unit of risk reduction. These estimates are obtained by approximating the corresponding dependency using an elementary function based on five available coordinate points. These coordinates reflect the marginal willingness to pay for each additional unit of risk reduction, as derived from five different risk reduction scenarios presented in the survey. To more accurately assess the declining willingness to pay, an adjustment for cognitive biases is suggested by incorporating questions that evaluate respondents' competency in working with percentage points. It is assumed that the proposed approach will help mitigate the well-known issue in the literature regarding the dependence of VSL estimates on survey design, particularly the level of risk reduction considered. This, in turn, will reduce the manipulability of such studies and significantly enhance trust in their results.