Best Practice Regulation Guidance Note: Value of statistical life
This note provides guidance on how officers preparing the cost-benefit analysis in Regulation Impact Statements should treat the benefits of regulations designed to reduce the risk of physical harm.
A number of regulatory proposals are aimed at reducing the risk of physical harm, for example, occupational health and safety laws, warning labels on tobacco products and transport safety measures such as seat belt laws. This raises the issue of how to measure and articulate this benefit in a Regulation Impact Statement. Different methods have been proposed for valuing reductions in the risk of physical harm and this note sets out a method most appropriate for the best practice regulation process.