Value of Statistical Life

The Value of a Statistical Life (VSL) is a way to estimate how much society is willing to spend to reduce the risk of one death. It's not about valuing an individual's life directly but assessing the economic benefit of safety improvements or policies that save lives. For example, if people are willing to pay $100 to reduce their chances of dying by 1 in 10,000, the VSL would be $1 million (since $100 ÷ 1/10,000). This helps policymakers compare the costs of safety measures with their benefits in terms of lives saved.