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The value of a statistical life in Sweden: A review of the empirical literature

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  • Hultkrantz, Lars
  • Svensson, Mikael

Abstract

Recent focus on cost-benefit/socio-economic assessment of government “life-saving” programmes within public health, pharmaceutics, transport, and civil contingencies has spurred a wave of empirical research on the value of a statistical life (VSL) in Sweden. This paper provides an overview of the received evidence from a range of studies in one country and over a relatively short time period. A literature search was conducted in Econlit, Pubmed, Google Scholar and in bibliographies of published papers. Twelve studies on VSL with a total of 48 VSL estimates, published with data from Sweden from 1996 onwards, were identified. Among all estimates VSL varies from 9 to 1121 million SEK (€0.9–121 million). Based on a set of additional quality inclusion criteria, as used also in a recent global review of VSL studies, the sample is restricted to 9 studies with a total of 29 VSL estimates with VSL varying from 9 to 98 million SEK (€0.9–10.6 million). The raw mean among these estimates is 34.6 million SEK (€3.7 million) and the median is 23 million SEK (€2.5 million). Currently, official authorities in Sweden recommend a VSL of 22 million Swedish kronor (€2.4 million). We also point out important concerns regarding validity of these estimates: primarily the problem that VSL is significantly related to the size of the mortality risk reduction showing significant scale insensitivity, in contrast to theoretical assumptions but in line with previous empirical findings.

Suggested Citation

  • Hultkrantz, Lars & Svensson, Mikael, 2012. "The value of a statistical life in Sweden: A review of the empirical literature," Health Policy, Elsevier, vol. 108(2), pages 302-310.
    • Handle: RePEc:eee:hepoli:v:108:y:2012:i:2:p:302-310
    DOI: 10.1016/j.healthpol.2012.09.007
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    2. Jaithri Ananthapavan & Marj Moodie & Andrew J. Milat & Rob Carter, 2021. "Systematic Review to Update ‘Value of a Statistical Life’ Estimates for Australia," IJERPH, MDPI, vol. 18(11), pages 1-17, June.
    3. Andersson, Henrik & Hole, Arne Risa & Svensson, Mikael, 2016. "Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 41-53.
    4. Hultkrantz, Lars & Svensson, Mikael, 2012. "A Comparison of Benefit Cost and Cost Utility Analysis in Practice: Divergent Policies in Sweden," Karlstad University Working Papers in Economics 1, Karlstad University, Department of Economics.
    5. S. Olofsson & U.-G. Gerdtham & L. Hultkrantz & U. Persson, 2019. "Value of a QALY and VSI estimated with the chained approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1063-1077, September.
    6. Vimefall Elin & Persson Mattias & Olofsson Sara & Hultkrantz Lars, 2022. "Is prevention of suicide worth less? A comparison of the value per statistical life," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 261-275, March.
    7. Jaldell Henrik, 2013. "Cost-benefit analyses of sprinklers in nursing homes for elderly," Journal of Benefit-Cost Analysis, De Gruyter, vol. 4(2), pages 209-235, August.
    8. S. Olofsson & U.-G. Gerdtham & L. Hultkrantz & U. Persson, 2018. "Measuring the end-of-life premium in cancer using individual ex ante willingness to pay," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(6), pages 807-820, July.
    9. Lazuka, Volha, 2019. "It’s a long walk: Lasting effects of maternity ward openings on labour market performance," Lund Papers in Economic History 187, Lund University, Department of Economic History.
    10. Henrik Andersson & James K. Hammitt & Kristian Sundström, 2015. "Willingness to Pay and QALYs: What Can We Learn about Valuing Foodborne Risk?," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 727-752, September.
    11. Sara Olofsson & Ulf G. Gerdtham & Lars Hultkrantz & Ulf Persson, 2019. "Dread and Risk Elimination Premium for the Value of a Statistical Life," Risk Analysis, John Wiley & Sons, vol. 39(11), pages 2391-2407, November.
    12. Svensson, Mikael & Hultkrantz, Lars, 2012. "The Willingness to Pay for a QALY - Results based on value of statistical life estimates in Sweden," Karlstad University Working Papers in Economics 2, Karlstad University, Department of Economics.
    13. Kjær, Trine & Nielsen, Jytte Seested & Hole, Arne Risa, 2018. "An investigation into procedural (in)variance in the valuation of mortality risk reductions," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 278-284.
    14. Volha Lazuka & Luciana Quaranta & Tommy Bengtsson, 2016. "Fighting Infectious Disease: Evidence from Sweden 1870–1940," Population and Development Review, The Population Council, Inc., vol. 42(1), pages 27-52, March.
    15. Elaheh Ainy & Hamid Soori & Mojtaba Ganjali & Henry Le & Taban Baghfalaki, 2014. "Estimating Cost of Road Traffic Injuries in Iran Using Willingness to Pay (WTP) Method," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-16, December.
    16. Andersson, Henrik & Hultkrantz, Lars & Lindberg, Gunnar & Nilsson, Jan-Eric, 2017. "The role of economic analysis for investment priorities in Sweden’s transport sector," Working papers in Transport Economics 2017:12, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 23 May 2018.
    17. Gyrd-Hansen, Dorte & Kjær, Trine & Seested Nielsen, Jytte, 2016. "The value of mortality risk reductions. Pure altruism – a confounder?," Journal of Health Economics, Elsevier, vol. 49(C), pages 184-192.
    18. Michal Jakubczyk, 2016. "Estimating the membership function of the fuzzy willingness-to-pay/accept for health via Bayesian modelling," KAE Working Papers 2016-011, Warsaw School of Economics, Collegium of Economic Analysis.
    19. Meg Perry-Duxbury & Job Exel & Werner Brouwer, 2019. "How to value safety in economic evaluations in health care? A review of applications in different sectors," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1041-1061, September.
    20. Michal Jakubczyk, 2016. "Choosing from multiple alternatives in cost-effectiveness analysis with fuzzy willingness-to-pay/accept and uncertainty," KAE Working Papers 2016-006, Warsaw School of Economics, Collegium of Economic Analysis.
    21. Olofsson, Sara & Gerdtham , Ulf-G & Hultkrantz , Lars & Persson , Ulf, 2016. "Chained Approach vs Contingent Valuation for Estimating the Value of Risk Reduction," Working Papers 2016:34, Lund University, Department of Economics.

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    More about this item

    Keywords

    Willingness to pay; Value of a statistical life; Stated preferences; Revealed preferences; Economic evaluation;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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