In Table 4. 4, Professor Kip Viscusi estimates that the cost per life saved by current government risk-reducing programs ranges from $100,000 for unvented space heaters to $72 billion for a proposed standard to reduce occupational exposure to formaldehyde.

a. Assuming these values to be correct, how might efficiency be enhanced in these two programs?

b. Should the government strive to equalize the marginal costs per life saved across all lifesaving programs?

Table 4. 4

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TABLE 4.4 Unvented Space Heaters Cabin Fire Protection Passive Restraints/Belts Seat Cushion Flammability The Cost of Risk-Reducing Regulations Agency Year Initial Annual and Status Risk Floor Emergency Lighting Concrete and Masonry Construction Hazard Communication Benzene/Fugitive Emissions Radionuclides/ Uranium Mines Benzene CPSC 1980 F FAA 1985 F NHTSA 1984 F FAA 1984 F FAA 1984 F OSHA 1988 F OSHA 1983 F 1984 F 1984 F OSHA 1987 F 2.7 in 105 6.5 in 108 9.1 in 105 1.6 in 107 2.2 in 108 1.4 in 105 4.0 in 105 2.1 in 104 1.4 in 104 8.8 in 104 Cost Per Life Saved Annual Lives Saved (Millions of 1984 $) 63.000 15.000 1,850.000 37.000 5.000 6.500 200.000 0.310 1.100 3.800 $.10 .20 8 .30 .60 .70 1.40 1.80 2.80 6.90 17.10 (continued)