VSL: The United Kingdom and Ireland sit on either side of the Irish Sea, which is the most radioactively contaminated sea in the world. Imagine that the two countries are considering a collaboration to stop the dumping of radioactive waste into the sea. They anticipate that, over the next decade, this policy will save an equal number of lives in each country. Theyve turned to you to help them determine whether the benefits of this investment would exceed its costs. Youve offered to calculate each countrys Value of a Statistical Life using data from each countrys labor market. (Assume that Job A and B are identical in all ways, except for their salaries and safety)

	Job A	Job B
Job mortality rate (Deaths per year of work)	0.0004	0.0002
Salary in the UK ($)	75000	60000
Salary in Ireland ($)	76000	62000

1Based off of this information, what is the estimated Value of a Statistical Life in the UK?

1.2 What is the estimated Value of a Statistical Life in Ireland?

1.3 (Select any/all that apply) This approach to estimating the benefits of environ- mental policies could be classified as. . .

a) Market value analysis b) Revealed preference analysis

c) Contingent valuation study d) General equilibrium model

e) Partial equilibrium model

1.4 Assume both countries are using cost-benefit analysis to decide how much to invest to reduce dumping of radioactive waste. If these investments are anticipated to save the same number of lives in both countries, which country would benefit more from the pollution reduction policy? Explain.