Valuing fatal risks to children and adults: Effects of disease, latency, and risk aversion

We examine heterogeneity of willingness to pay (WTP) to reduce risks of fatal disease and trauma to adults and children. Using a stated-preference survey fielded to a large, nationally representative internet panel, we find that WTP to reduce fatal-disease risks (caused by consuming pesticide residues on foods) are similar for several types of cancer and non-cancer diseases and similar to WTP to reduce motor-vehicle crashes. WTP to reduce risk to one's child is uniformly larger than to reduce risk to another adult or to oneself. Estimated values per statistical life are $6-10 million for adults and $12-15 million for children.