Law, Business and Society 11th Edition by Tony McAdams

تمرين 44

Your Life: $7 Million
How much is a life worth That question is probably the crucial cost-benefit inquiry. When imposing new environmental or car safety rules, for example, we are forced to think about how much money we should spend to save an additional life. Recently, leading scholar Kip Viscusi and colleagues put a $7 to $8 million value on human life based on what we are willing to pay to save an average American life. (In 2010, the FDA valued a life at $7.9 million, while the EPA put the figure at $9.1 million.)
The National Highway Traffic Safety Administration (NHTSA) has announced that it will recommend the inclusion of rear-view video systems in new cars. New rules were called for by Congress in the 2008 Cameron Gulbransen Kids Transportation Safety Act. The law was named after a two-year-old boy who was killed in the family driveway when his father accidentally backed over him. According to NHTSA, backover accidents cause an average of 229 deaths and more than 18,000 injuries per year, most involving those under 5 or over 70. NHTSA estimates the rule would save 95 to 112 lives per year and prevent 7,000 to 8,000 injuries at a cost of about $11.8 million per life saved. The cost would range from $159 to $203 per vehicle or somewhat less if the vehicle is already equipped with a display screen, but often the safety features are available only as part of more expensive option packages.
Sources: Binyamin Appelbaum, "As U.S. Agencies Put More Value on a Life, Businesses Fret," The New York Times, February 16, 2011 [www.nytimes.com]; Thomas J. Kniesner, W. Kip Viscusi, and James P. Ziliak, "Policy Relevant Heterogeneity in the Value of Statistical Life: New Evidence from Panel Data Quantile Regression," Journal of Risk and Uncertainty 40 (2010), p. 15; and Peter Vales-Dapena, "Autos May Be Required to Have Back-Up Cameras," CNNMoney.com, December 3, 2010 [http://money.cnn.com/2010/12/03/autos/backup_cameras_nhtsa/index.htm].
a. How much is your life worth
b. Should the value of lives be a consideration in federal rules and spending decisions Explain.