Private Protection from Collective Environmental Risks
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Environmental protection is designed to reduce collective risks to human and environmental health. Since private citizens are free to reduce the risk privately as well, these environmental risks are endogenous to economic and ecological circumstances. Herein we review an economist’s perspective on environmental risk reduction policy given this endogenous risk idea. We review the literature on choice under risk, risk valuation and the value of statistical life, risk perceptions, and rational risk regulation.
Abstract
Environmental protection is designed to reduce collective risks to human and environmental health. Since private citizens are free to reduce the risk privately as well, these environmental risks are endogenous to economic and ecological circumstances. Herein we review an economist’s perspective on environmental risk reduction policy given this endogenous risk idea. We review the literature on choice under risk, risk valuation and the value of statistical life, risk perceptions, and rational risk regulation.
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