Proper Benefit Cost Analysis Key in Mitigation Grant Application


Statistical Standard Values or Willingness to Pay

Natural disasters commonly result in casualties— including deaths, injuries and illnesses. Casualties are the most devastating impact of a disaster. Like other benefits, the benefits of avoided casualties are calculated as the difference in casualties occurring before and after mitigation. FEMA uses statistical values to place a monetary value on the benefits of avoided casualties. FEMA Benefit Cost Analysis statistical standard values were derived from 2008 FAA “Willingness to Pay”values. In Version 4.8 (dated 2009) they were as follows:

Death $5,800,000.00

Hospitalized $1,088,000.00

Treat & Release $ 90,000.00

Self Treat $ 12,000.00

(FEMA will update these values periodically)

SOURC E : FEMA’s BCA Toolkit 4.8 —2009 Updated Life Safety Benefit Values For 2015, the Value of Statistical Life (VSL) equivalent was increased to $6.6 million. The economic value of injuries avoided is calculated differently in the BCA modules, which include casualty values but are scaled off of this new fatality rate.