The Value of Statistical Life and the Economics of Landmine Clearance in Developing Countries

Abstract

This paper presents estimates of the value of statistical life (VSL) in rural Thailand using the contingent-valuation (CV) method. These estimates are applied to an economic analysis of landmine clearance. The estimated VSL of US$250,000 suggests that the value of lives saved from landmine clearance is at least an order of magnitude greater than the values used in existing studies.

The value of statistical life and cost–benefit evaluations of landmine clearance in Cambodia

“…This survey was a significant extension of the approach used in an earlier survey in rural Northeast Thailand (Gibson et al, 2007). In contrast with that earlier work, the two provinces surveyed here have considerable landmine and UXO contamination.…”

“…But it is not clear that this approach can give reliable estimates since the VSL should also differ with levels of risk and awareness of the particular source of risk. For example, Gibson et al (2007) carry out a CBA of landmine clearance in Cambodia, using VSL estimates transferred from a survey in Northern Thailand. However, almost none of the respondents in the Thai survey had first-hand experience of landmines so it is not clear that their stated VSL would be the same as for rural villagers in Cambodia for whom landmines are a much more salient risk.…”

“…For example, in Thailand, VSL estimates for air pollution and traffic accident risk in Bangkok range from US$1.3-$1.5 million, giving a ratio to lifetime earnings of about 60:1 (Vassanadumrongdee and Matsuoka, 2005). The ratio of the VSL to lifetime earnings in the landmines study by Gibson et al (2007) in rural Thailand is approximately 40:1. Even higher VSL estimates, of up to US$3.1 million, come from compensating wage differentials for fatalities in India's manufacturing sector, which give a ratio to lifetime earnings of over 400:1 (Shanmugam, 2001).…”

Rural Area Transformation: From Cropland to Mine Fields – Zemunik Donji Municipality (Croatia) Case Study

“…Their studies are more focused on the research of natural phenomena and their influence on population (Marandola & Hogan, 2006), than on environmental risks caused by social and political changes, such as the landmine issue. The socio-economic impact of landmines has been studied in works by Harris (2000Harris ( , 2002, Elliot & Harris (2001) and Gibson et al (2007). Taking into account the economics of landmine clearance, Harris (2000) and Elliot & Harris (2001) have dealt with issues in Cambodia, Afghanistan and Mozambique, while Gibson et al (2007) have provided a thorough analysis of the value of statistical life (VSL), and the economics of landmine clearance in developing countries.…”

“…The socio-economic impact of landmines has been studied in works by Harris (2000Harris ( , 2002, Elliot & Harris (2001) and Gibson et al (2007). Taking into account the economics of landmine clearance, Harris (2000) and Elliot & Harris (2001) have dealt with issues in Cambodia, Afghanistan and Mozambique, while Gibson et al (2007) have provided a thorough analysis of the value of statistical life (VSL), and the economics of landmine clearance in developing countries. Among others, the main benefits of demining include increased agricultural output, decreased transport time and running costs, reduced human casualties and saved costs of supporting refugees and displaced persons (Harris, 2002;Mitchell, 2004).…”