Pollution in Pennsylvannia steel mills reduces the average life expectancy from 75.4 to 73.6 in Bethlehem PA. Assuming a value of a statistical life of $8 million and a population of 75,297, what is the cost of the pollution to the current community? (Answer in dollars and cents, 500.10).

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BlackTom AI · Accepted Answer

The question asks for the total cost of pollution to the current community, using a value of a statistical life (VSL) of $8,000,000 and a population of 75,297, given a reduction in life expectancy from 75.4 to 73.6 years.

First, determine the years of life lost per person due to pollution. The decrease is 75.4 − 73.6 = 1.8 years per person.

Next, convert the VSL into a value per year lived, i.e., the value per statistical life-year (VSLY). This is done by dividing the VSL by the average life expectancy used in the calculation:
VSLY = VSL / average life expectancy = $8,000,000 / 75.4 years ≈ $106,101 per life-year.

With 1.8 years lost per person and 75,297 people in the community, the total cost is:
Total cost = population × years lost × VSLY
= 75,297 × 1.8 × $106,101 ≈ 75,297 × 1.8 × 106,101
First multiply 75,297 by 1.8: 75,297 × 1.8 = 135,534.6
Then multiply by 106,101: 135,534.6 × 106,101 ≈ $14,380,522,248

Thus, the calculated cost to the current community is approximately $14,380,522,248. The result is expressed in dollars and cents as requested, and aligns with the approach of valuing lost life-years using VSLY derived from the given VSL and average life expectancy.

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Pollution in Pennsylvannia steel mills reduces the average life expectancy from 75.4 to 73.6 in Bethlehem PA. Assuming a value of a statistical life of $8 million and a population of 75,297, what is the cost of the pollution to the current community? (Answer in dollars and cents, 500.10).

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