Valuing Mortality and Morbidity in the Context of Disaster Risks

Benefit-cost analyses of disaster risk
reduction (DRR) projects are an important tool for
evaluating the efficiency of such projects, and an important
input into decision making. These analyses, however, often
fail to monetize the benefits of reduced death and injury.
The authors review the literature on valuing reduced death
and injury, and suggest methods for calculating
order-of-magnitude estimates of these benefits. Because few
empirical estimates of the Value of a Statistical Life (VSL)
are available for developing countries, methods for
transferring estimates from high income to middle and low
income countries are reviewed. The authors suggest using the
range of values implied by an income elasticity of 1.0 and
an elasticity of 1.5. With regard to injury valuation they
discuss arguments for and against monetizing Quality
Adjusted Life Years, and provide shortcuts to valuing
injuries that may be used to assess their importance in DRR
benefit-cost analyses.