What is the Price of a Human Life?

Putting a Price on Life: The Value of Statistical Life and its Application to Water Issues

In this video, we dive into the concepts of the Value of a Statistical Life (VSL) and its implications on policymaking, particularly in relation to water supply, sanitation, and hygiene. We explore how the VSL can be used as a tool to understand society's willingness to finance water projects by looking at the cost-benefit ratio. The video also discusses different methods for assessing VSL, beginning with comparing individual earnings with the perceived value of our lives. We further discuss the methodology behind calculating VSL, the elasticity of value for life, and its effects on policy decisions. Lastly, we delve into policy implications of these economic models, such as the societal agreement to fund safe water access projects, even in the world's poorest country.

00:00 Introduction: The Value of Life
00:43 The Concept of an Invaluable Life
01:20 The Cost-Benefit Analysis of Saving Lives
02:48 The Value of Life in Different Scenarios
03:50 The Biases in Valuing Life
04:19 The Job Market's Influence on the Value of Life
07:10 The Economic Benefits of Water Treatment
08:42 The Value of Statistical Life as a Tool
10:10 The Value of Life in Different Countries
12:18 The Value of Life and Access to Water
13:17 Conclusion: The Importance of Marketing in the Water Sector

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