(How) Can we value health, safety and the environment?

The assumptions that underpin the conventional economic model of ‘rational agents’ tend to be substantially violated by data from surveys that try to elicit people’s values for health, safety and environmental goods. Psychological research suggests that there may be a large affective component in people’s responses to such surveys, with the result that those data are not amenable to the ‘logic’ of economic rationality. This raises questions both about the way we model human judgment and decision processes, and also about the use of survey data to guide public policy in these and other areas.