Alolayan, Mohammad A., Evans, John S. and Hammitt, James K. (2017) Valuing Mortality Risk in Kuwait: Stated-Preference with a New Consistency Test. Environmental and Resource Economics, 66 (4). pp. 629-646.

Abstract

We report stated-preference estimates of the value per statistical life (VSL) for Kuwaiti citizens obtained using an innovative test to identify respondents whose survey responses are consistent with economic theory. The consistency test requires that an individual report strictly positive willingness to pay (WTP) for mortality-risk reduction and that his responses to binary-choice valuation questions for two risk reductions be consistent with the theoretical requirement that WTP is less than but close to proportional to the change in risk reduction. Our estimates of VSL, $18 – 32 million, are approximately two to four times larger than values accepted for the United States. These values may reflect cultural factors as well as the substantially larger disposable income of Kuwaiti citizens.