1) The general public has always been very sympathetic to the U.S. Environmental Protection Agency’s efforts to refine the Value of a Statistical Life used for benefit-cost analysis of environmental regulations. True, False, Uncertain? Explain. (HINT: What evidence do you find in the supplementary materials that accompany the paper entitled “Euthanizing the Value of a Statistical Life”?)
2) What has been the most typical “illness profile” for which economic studies have sought to estimate society’s willingness to pay for a risk reduction? Is this illness profile typical for health risks related to natural resource extraction and consumption? Explain.
3) From the perspective of stated preference methods in general, explain the concept of “consequentiality.” Describe how consequentiality might be conveyed to a survey respondent in the context of a stated preference survey.