Science Inventory

Income Elasticity Literature Review


Income Elasticity Literature Review.


The SAB would evaluate the income elasticity estimates identified in the EPA-provided literature review, determining the extent to which these estimates are appropriate to use in human health benefits assessments.


Following advice from the SAB Council, when estimating the economic value of reductions in air pollution-related mortality and morbidity risk, EPA accounts for the effect of personal income on the willingness to pay to reduce the risk of adverse health outcomes. These income growth adjustment factors are calculated using a combination of income elasticity estimates and income growth projections, both of which have remained essentially unchanged since 1999. These income elasticity estimates vary according to the severity of illness. EPA recently received advice from the SAB regarding the range of income elasticities to apply as well as the research standards to use when selecting income elasticity estimates. Following this advice, EPA consulted with a contractor to update its income elasticity and income growth projections, and generate new income growth adjustment factors.


Peer Review Plan   (PDF,NA pp, 33 KB,  about PDF)

SAB Review of EPA’s Proposed Methodology for Updating Mortality Risk Valuation Estimates for Policy Analysis   (PDF,NA pp, 590 KB,  about PDF)

Recommended Income Elasticity and Income Growth Estimates: Technical Memorandum   (PDF,NA pp, 140 KB,  about PDF)

Updating Income Elasticity Estimates in EPA's BenMAP Air Pollution Benefits Estimation System   (PDF,NA pp, 601 KB,  about PDF)

Record Details:

Product Published Date: 02/23/2017
Record Last Revised: 10/26/2017
OMB Category: Influential
Record ID: 247420