The Value of Improved National Exposure Information for Perchloroethylene (Perc): A Case Study for Dry Cleaners

Kimberly M. Thompson and John S. Evans

Risk Analysis, 1997, vol. 17, issue 2, 253-271

Abstract: Opportunities to improve our information about risk continue to arise and lead decision makers to indirectly address the issue of the value of improved information through resource allocation decisions. Statistical decision analysis techniques provide an analytical framework for valuing information explicitly in the context of regulatory decision making. This paper provides estimates of the value of improved national estimates of perchloroethylene (perc) exposure from U.S. dry cleaners in the context of EPA's recently promulgated National Emissions Standard for Hazardous Air Pollutants (NESHAP) with emphasis on exposure information. Consistent with the NESHAP decision, we relied on EPA's technology and economic assessments. In this first cut analysis, estimates of the exposures of workers, consumers of dry cleaning services, and the general public are probabilistically characterized to reflect uncertainty about exposure and potency. We consider the net benefits of the different control options by assessing the associated changes in the total annual population risks and valuing them in monetary terms, with no constraints placed on maximum individual risks. The results suggest that the expected value of perfect information (EVPI) about potency exceeds the EVPI about exposure. Sensitivity analyses demonstrate how the choices of the valuation parameters and distributions used to characterize uncertainty in the model affect the estimates of the value of information.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:wly:riskan:v:17:y:1997:i:2:p:253-271

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