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The value of statistical life and cost–benefit evaluations of landmine clearance in Cambodia

Published online by Cambridge University Press:  26 February 2010

MICHAEL CAMERON ,
JOHN GIBSON ,
KENT HELMERS ,
STEVEN LIM ,
JOHN TRESSLER  and
KIEN VADDANAK
MICHAEL CAMERON
Affiliation:
Department of Economics, University of Waikato, Hamilton, New Zealand. Email: [email protected]
JOHN GIBSON
Affiliation:
Department of Economics, University of Waikato, Private Bag 3105, Hamilton 3240, New Zealand. Fax 64-7 838 4331. Email: [email protected]
KENT HELMERS
Affiliation:
Independent Consultant, Phnom Penh, Cambodia. Email: [email protected]
STEVEN LIM
Affiliation:
Department of Economics, University of Waikato, Hamilton, New Zealand. Email: [email protected]
JOHN TRESSLER
Affiliation:
Department of Economics, University of Waikato, Hamilton, New Zealand. Email: [email protected]
KIEN VADDANAK
Affiliation:
Disaster Management Department, Cambodian Red Cross, Phnom Penh, Cambodia. Email: [email protected]
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Abstract

Development agencies spend approximately US$ 400 million per year on landmine clearance. Yet many cost–benefit evaluations suggest that landmine clearance is socially wasteful because costs appear to far outweigh social benefits. This paper presents new estimates of the benefits of clearing landmines based on a contingent valuation survey in two provinces in rural Cambodia where we asked respondents questions that elicit their trade-offs between money and the risk of death from landmine accidents. The estimated Value of a Statistical Life (VSL) is US$ 0.4 million. In contrast, most previous studies of landmine clearance use foregone income or average GDP per capita, which has a lifetime value of only US$ 2,000 in Cambodia. Humanitarian landmine clearance emerges as a more attractive rural development policy when appropriate estimates of the VSL are used.

Type
Research Article
Information
Environment and Development Economics , Volume 15 , Issue 4 , August 2010 , pp. 395 - 416
Copyright
Copyright © Cambridge University Press 2010

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