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Value of statistical life and cause of accident: A choice experiment

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Author Info
Carlsson, Fredrik () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Daruvala, Dinky () (Department of Economics, Karlstad University)
Jaldell, Henrik () (Department of Economics, Karlstad University)

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Abstract

The purpose of this study is to compare value of statistical life (VSL) estimates for traffic, drowning and fire accidents. Using a choice experiment in a mail survey of 5000 Swedish respondents we estimated the willingness to pay for risk reductions in the three accidents. In the experiment respondents were asked in a series of questions, whether they would choose risk reducing investments where type of accident, cost of the investment, the risk reduction acquired, and the baseline risk varied between questions. The VSLs for fire and drowning accidents were found to be about 1/3 lower than that for traffic accidents. Although respondents worry more about traffic accidents, this alone cannot explain the difference in VSL estimates. The difference between fire and drowning accidents was not found to be statistically significant.

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File URL: http://hdl.handle.net/2077/18845
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 332.

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Length: 22 pages
Date of creation: 09 Dec 2008
Date of revision:
Handle: RePEc:hhs:gunwpe:0332

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Stated preferences; statistical life; risk; traffic; fire; drowning; choice experiment;

Find related papers by JEL classification:
D60 - Microeconomics - - Welfare Economics - - - General
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
R41 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion

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This page was last updated on 2009-11-19.


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