This OECD book proposes an in depth analysis of the main methodological difficulties associated with estimating the social value of a reduction in environmental health risks to children.

The relationship between environment and children’s health has been the subject of increasing interest these last ten years. For instance, many OECD Member countries are reporting asthma epidemics exacerbated by air pollution: in the United States nearly 1 in 13 school-age children (approximately 4.8 million) has asthma, and the rate is increasing more rapidly in school-age children than in any other group. The importance of this issue has resulted in a growing number of epidemiological studies aiming at better understanding and better characterising the relationship between environmental pollution and the health of children. However, in many respects, the valuation of children’s health strongly differs from the valuation of adults’ health and constitutes a real challenge for analysts as well as for decision-makers. Consequently, this book proposes an in depth analysis of the main methodological difficulties associated with estimating the social value of a reduction in risk to children. Questions such as how to elicit children’s preferences, what valuation methodology and benefit measure to choose, how to discount benefits to children’s health, and how to account for economic uncertainties in this specific context of economic valuation will be systematically examined in order to define key policy implications and to pave the way for further research.

This report, the final output of the Valuation of Environment-Related Health Impacts (VERHI) project, presents new findings on whether the value of reducing environmental risk greater for children than for adults.

This report, the final output of the Valuation of Environment-Related Health Impacts (VERHI) project, presents new findings on whether the value of reducing environmental risk greater for children than for adults.

This paper describes alternative empirical techniques of economic analysis to assess the monetary value of human health, and outlines the issues that arise when these techniques are transported to value environmental hazard interventions intended to improve the health of young children. It examines four economic valuation techniques currently used to assess changes in human health (i.e., cost of illness method, hedonic method, averting behavior method, and contingent valuation method) and critiques the applicability of these techniques for assessing the value of children's health changes.

This article reviews the economics literature dealing with valuation of reduced environmental risks to children's health. We describe conceptual models together with results from a number of empirical studies. The conceptual models analyze valuation issues from the perspective of parents; treat health risk as endogenously determined; and demonstrate that in equilibrium, marginal willingness to pay to reduce risk for the child relative to marginal willingness to pay to reduce risk for the parent should equal the ratio of marginal risk reduction costs. Empirical studies treat both mortality and morbidity associated with exposure to environmental health risks. These studies generally find that parents are willing to pay more for absolute risk reductions for their children than they are willing to pay for corresponding risk reductions for themselves. Possible reasons for this outcome along with suggestions for further research are discussed.