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The economic value of reducing avoidable mortality
Angela Y Chang1,2,3, Gretchen A Stevens4, Diego S Cardoso5
1Danish Institute for Advanced Study, University of Southern Denmark, Odense, Denmark. achang@health.sdu.dk.
Reducing avoidable deaths significantly boosts economic welfare. Globally, populations value avoiding mortality at 23% of annual income, highlighting the economic benefits of improved health and longevity.
Area of Science:
- Health Economics
- Demography
- Public Health
Background:
- Individual and family welfare are enhanced by longer, healthier lives.
- The World Bank's Healthy Longevity Initiative aims to understand the economic implications of longevity.
- Quantifying the economic value of health improvements is crucial for policy development.
Purpose of the Study:
- To quantify the global economic value of achieving the lowest possible mortality rates.
- To estimate the economic value of reducing avoidable mortality across world regions, sexes, and ages.
- To project these economic values to 2050 under a rapid-progress scenario.
Main Methods:
- Estimation of the economic value of avoidable mortality (difference between observed and lowest achieved mortality).
- Analysis conducted for years 2000–2021, with projections to 2050.
- Calculations performed by world regions, sex, and age.
Main Results:
- In 2019, 69% of deaths (40 million) were avoidable.
- The global economic value of avoidable mortality was 23% of annual income.
- This value varied regionally, from 19% in China to 34% in sub-Saharan Africa.
Conclusions:
- Populations are willing to forgo substantial income for reduced mortality, indicating a high value placed on health.
- Achieving rapid mortality reductions by 2050 could halve the gap in life expectancy and yield economic value equivalent to 14% of annual income.
- The study provides strong evidence for the significant economic benefits of improving population health and longevity.
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