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An American life is worth $1m less than it was 5 years ago
(Agencies)
Updated: 2008-07-11 09:09

It is not just the US dollar that is losing value. A government agency has decided that an American life is not worth what it used to be.

The "value of a statistical life" is $6.9 million, the Environmental Protection Agency reckoned in May---a drop of almost $1 million from just five years ago.

The Associated Press discovered the change after a review of cost-benefit analyses over more than a dozen years.

Though it may seem like a harmless bureaucratic recalculation, the devaluation has real consequences.

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When drawing up regulations, government agencies put a value on human life, then weigh the costs versus the lifesaving benefits of a proposed rule. The less a life is worth to the government, the less the need for a regulation, such as tighter restrictions on pollution.

Consider, for example, a hypothetical regulation that costs $18 billion to enforce but will prevent 2,500 deaths. At $7.8 million per person (the old figure), the lifesaving benefits outweigh the costs. But at $6.9 million per person, the rule costs more than the lives it saves, so it may not be adopted.

Some environmentalists accuse the Bush administration of changing the value to avoid tougher rules, which the EPA denies.

"It appears that they're cooking the books in regards to the value of life," said S. William Becker, executive director of the National Association of Clean Air Agencies, which represents state and local air pollution regulators. "Those decisions are literally a matter of life and death."

Dan Esty, a senior EPA policy official in the administration of President George W. Bush's father, George H.W. Bush, and now director of the Yale Center for Environmental Law and Policy, said: "It's hard to imagine that it has other than a political motivation."

Agency officials say they were just following what the science told them.

The EPA figure is not based on people's earning capacity, or their potential contributions to society, or how much they are loved and needed by their friends and family, some of the factors used in insurance claims and wrongful-death lawsuits.

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