A risk related value of spend for saving a statistical life

Abstract

A risk related Value of Spend for Saving a Statistical Life (VSSSL) is proposed for cost-benefit studies across the power generation sector, and the nuclear industry in particular. An upper bound on VSSSL is set based on the UK government standard of around £1M or, in particular circumstances, £2M and the observation that excessive spend (probably of the order of more than £5M per statistical life) will cost lives. Above a risk of 10^-3 a^-1 it is assumed that VSSSL approaches a value around £2M (broad range £1M to £5M). At risks around 10^-6 a^-1 it is proposed that an appropriate VSSSL lies at £0.5M (range £0.25M to £1M). Where risks to the individual fall to the order of 10^-9 a^-1, or less, a low residual VSSSL of £0.01M is applied. A practical example is explored with respect to radiological protection where a total collective dose determination is disaggregated to resolve broad bands of individual exposure, and hence risk. Where collective doses are dominated by individual doses no more than a few μSv, the detriment arising from a manSv can be valued at about £15k to £60k, which can have a major effect on cost-benefit approaches to spend decisions.