Value of a Statistical Life

The Value of a Statistical Life (VSL) is an economic measure used to quantify the benefit of reducing the risk of death. It doesn't refer to the worth of an individual’s life but rather to the aggregate amount society is willing to spend to save a small, statistically identifiable number of lives. For example, if society is willing to pay $1 million for a safety improvement that reduces death risk by 1 in 10,000, the VSL is $10 million. This helps prioritize policies and safety investments to maximize public health benefits efficiently.