Step 3 : Estimate the average value of life saved
The approach used to estimate the average value of life saved for people with silicosis or a silica-related disease is presented in the formula below , with key assumptions underpinning the estimated outlined in Table 35 .
Estimated average value of life saved = Value of a statistical life year x
( Average life expectancy of an Australian - Weighted average life expectancy ) Table 35 Average value of life saved
Assumption
Value Value of a statistical life year $ 227,000 ( Office of Impact Analysis 2023 ) Average life expectancy of an Australian
Weighted average life expectancy of people with silicosis or a silica-related disease
Estimated average value of life saved
B . 9.4 Average value of illness avoid from silica-related disease
82.30 years ( Australian Institute of Health and Welfare 2022 )
74.0 years $ 1.9 million
The approach used to estimate the average value of illness avoided due to silicosis or silica-related disease is presented in the formula below , with key assumptions underpinning the estimated outlined in Table 36 .
Value of illness avoided = Value of Disability adjusted life year ( DALY ) x
( Weighted average life expectancy of people with silicosis or silica-related disease - Average age of diagnosis with silica-related disease )
Table 36 Average value of illness avoided from silica-related disease
Assumption
Value
Value of Disability adjusted life year ( DALY ) $ 96,462 ( Office of Impact Analysis 2023 ) )
Weighted average life expectancy of people with silicosis or silicarelated disease
74.0 years
Average age of diagnosis with silica-related disease 43.30 years ( Deloitte 2021 ) Estimated average value of illness avoided $ 3.0m
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