Over-reliance on the VSL measure often leads to excessive consideration and regulation of risk.
Regulators must measure welfare using transparent methods before determining the policies themselves.
The primary drawback of the VSL is that it fails to account for future generations’ valuation of benefits and costs.
It is time to reconsider the value of the VSL in policy analysis.
Regulatory benefit-cost analysis should account for people’s welfare, not just empirical data.
Policymakers should consider the impact of their decisions on not just wealth, but also human life.