In 2014, the city of Flint, Michigan began to source its drinking water from the polluted Flint River, leading to dangerously high lead concentrations in the water supply. Lead exposure is known to have severe adverse effects on children’s physical and cognitive development.
Suppose that each household gets utility from wealth ( w) and health ( h):
√ √
u( w,h) = w+ h In 2014, the city of Flint, Michigan began to source its drinking water from the polluted Flint River, leading to dangerously high lead concentrations in the water supply. Lead exposure is known to have severe adverse effects on children’s physical and cognitive development.
Suppose that each household gets utility from wealth ( w) and health ( h):
√ √
u( w,h) = w+ h
Each household starts out with h 0= 100 units of health, but there is a 50% chance that lead contamination will cause health damage d= 36. Each household starts out with wealth w 0. Each household may spend pto purchase a water filter, which eliminates the risk of lead contamination.
Each household starts out with h 0= 100 units of health, but there is a 50% chance that lead contamination will cause health damage d= 36. Each household starts out with wealth w 0. Each household may spend pto purchase a water filter, which eliminates the risk of lead contamination.
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