AN APPLICATION OF HEALTH-HEALTH ANALYSIS - CRYSTALLINE SILICA REGULATION IN CALIFORNIA

Economic analyses of environmental regulations of human carcinogens ha ve generally focused on the cost per life saved of the proposed regula tion. The work of Viscusi and Wildavsky has demonstrated that such an approach considers only one side of the issue. The relationship betwee n the level of wealth and the health of the population is not addresse d in the traditional analyses. This paper uses the results of the rese arch by Viscusi and Lutter and Morrall as a foundation to examine the proposed regulation of respirable crystalline silica as a human carcin ogen by California. The primary conclusion is that the costs in terms of the health effects of the regulations due to reduced wealth may be greater than the benefits associated with the regulation. Therefore, a t this time it would be better to devote scarce resources toward furth er study to remove the uncertainty associated with the regulation of a mbient concentrations of crystalline silica. The question as to how mu ch insurance to buy in this uncertain case must consider both the bene fits of the regulation and the costs in terms of reduced wealth. (C) 1 997 Academic Press Limited.