Box 1. Estimating the VSL for Morocco
Several studies have estimated the VSL in many countries on each continent, and these results were later used in meta-analyses [25] [27] [28] [29] . The average VSL for nine high-income OECD countries has been estimated to range from US$4.4 million to US$4.8 million (2011 prices, at market rates) [8] [30] . These numbers reflect the median and the mean VSL estimates from a database of quality-screened willingness-to-pay studies conducted in high-income OECD countries. To derive the VSL for Morocco, we use the benefits transfer method, accounting for differences in socio-economic parameters between the two sites. The transfer is conducted based on the formula:
where: VSLMorocco = VSL for Morocco VSLOECD = VSL for OECD countries (average) (GDP/capita)Morocco = GDP per capita in Morocco (GDP/capita)OECD = GDP per capita in OECD (average) e = income elasticity to the VSL (varying from 1 to 1.4, with a central estimate of 1.2) Accordingly, the VSL for Morocco is estimated between US$183,000 and US$200,000, with an average of US$191,500. We use this figure to value the economic cost related to premature deaths due to air pollution.
Source: based on [31] . |