Air pollution is estimated to kill more people than HIV and malaria combined, around 3.3 million a year. In London, many schools have been found to be located in areas with levels of NOx pollution concentration much higher than recommended. A policy is being considered to reduce NOx pollution to allowable levels in the city of London and your team has been tasked with estimating the benefits of that policy. i. [4 points] Your first task is to estimate the Value of a Statistical Life (VSL). Explain why you need to estimate the VSL and briefly how it works. ii. [4 points] What data would you need to carry out this method? Explain. iii. [4 points] In your final report about the benefits, you want to be forthcoming about the limitations of your method. What is one of the issues with VSL? Does this issue mean that your VSL estimate is likely over- or under-estimated? Explain. iv. [4 points] You estimate that the VSL is worth $10 million. Suppose that school-children impacted by this pollution usually suffer from health effects that can lead to death this year and the 30 subsequent years. If the policy leads to 20 less of these deaths per year, what is the present value of this benefit? Write down and explain the equation you use. V. [4 points] The cleanup takes a decade, and in 10 years the city of London government is planning a public campaign to advertise the new clean environment for the schools and attract more children in those schools. That campaign will cost $10 million. What is the present value of that cost? Write down and explain the equation.