An Expressed Preference Determination of College Students’ Valuation of Statistical Lives: Methods and Implications

Kevin L. Brady, Utah State University

Abstract

U.S. government agencies typically apply a general societal value of statistical life (VSL) estimate when performing cost-benefit analyses dealing with college students. However, theory suggests college students’ VSL is lower than society’s; therefore, an inefficient level of risk reduction is supplied among students. A contingent valuation study surveying 137 students was conducted to calculate the VSL of students at Utah State University. Statistical inference is possible because these students are shown to be representative of the general student body, and the respondents demonstrate a proficient understanding of mortality risk reduction. The students' VSL of $2.96 million is found to be significantly lower than the $5.4 million estimate of U.S. citizens' VSL computed by Kochi et al. (2006). This suggests students pay more for mortality risk reduction than they are willing. Nonetheless, further research is encouraged.