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The value of improved road safety

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Author Info

  • Hultkrantz, Lars

    ()
    (Department of Business, Economics, Statistics and Informatics)

  • Lindberg, Gunnar

    (VTI)

  • Andersson, Camilla

    (Umeå University)

Abstract

We report the results of a contingent valuation study of the value of a serious statistical accident (VSSA) in an urban road safety context in Sweden. To account for scale bias of responses (i.e., the insensitivity of the willingness-to-pay value to the size of the risk reduction being valued) we derive a lower-bound estimate. This is computed from the willingness to pay for a private-good device or a public safety program that completely eliminates the risk of fatal and serious injury road accidents. We search for values from respondents with self- reported high confidence in their answers. Our conservative estimates result in average benefits of public road-safety measures targeting serious accidents that are greater than previous studies have indicated.

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Bibliographic Info

Paper provided by Örebro University, School of Business in its series Working Papers with number 2005:4.

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Length: 36 pages
Date of creation: 10 Mar 2005
Date of revision:
Handle: RePEc:hhs:oruesi:2005_004

Contact details of provider:
Postal: Örebro University School of Business, SE - 701 82 ÖREBRO, Sweden
Phone: 019-30 30 00
Fax: 019-33 25 46
Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/
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Keywords: Value of statistical life; vision zero; contingent valuation; scale bias; scope bias;

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References

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Citations

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Cited by:
  1. Hultkrantz, Lars & Svensson, Mikael, 2010. "The Economic Value of Preventing Fatalities: Recent evidence on the value of a statistical life in Sweden," Working Papers 2010:14, Örebro University, School of Business.
  2. Pedersen, Line Bjørnskov & Gyrd-Hansen, Dorte & Kjær, Trine, 2011. "The influence of information and private versus public provision on preferences for screening for prostate cancer: A willingness-to-pay study," Health Policy, Elsevier, vol. 101(3), pages 277-289, August.
  3. Andersson, Henrik & Hammitt, James & Sundström, Kristian, 2011. "Willingness to pay and QALYs: What can we learn about valuing foodborne risk?," TSE Working Papers 11-272, Toulouse School of Economics (TSE).
  4. Mikael Svensson, 2009. "Precautionary behavior and willingness to pay for a mortality risk reduction: Searching for the expected relationship," Journal of Risk and Uncertainty, Springer, vol. 39(1), pages 65-85, August.
  5. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
  6. Andersson, Henrik & Svensson, Mikael, 2007. "Cognitive Ability and Scale Bias in the Contingent Valuation Method," Working Papers 2007:1, Swedish National Road & Transport Research Institute (VTI).
  7. Marielle Brunette, 2012. "Do risk communication methods perform to generate rationality?," Working Papers - Cahiers du LEF 2012-01, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
  8. Andersson, Henrik, 2012. "Consistency in preferences for road safety: An analysis of precautionary and stated behavior," TSE Working Papers 12-359, Toulouse School of Economics (TSE).
  9. Svensson, Mikael, 2006. "The Value of a Statistical Life in Sweden Estimates from Two Studies using the "Certainty Approach" Calibration," Working Papers 2006:6, Örebro University, School of Business, revised 25 Jul 2007.
  10. Andersson, Henrik & Hammitt, James & Lindberg, Gunnar & Sundström, Kristian, 2011. "Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety," LERNA Working Papers 11.20.354, LERNA, University of Toulouse.
  11. Svensson, Mikael & Vredin Johansson, Maria, 2007. "Willingness to Pay for Private and Public Safety: Why the Difference?," Working Papers 2007:2, Örebro University, School of Business.
  12. Svensson, Mikael, 2006. "Economic Upturns are Good for Your Heart but Watch out for Accidents," Working Papers 2006:9, Örebro University, School of Business, revised 26 Jun 2007.
  13. Carlsson, Fredrik & Daruvala, Dinky & Jaldell, Henrik, 2008. "Value of statistical life and cause of accident: A choice experiment," Working Papers in Economics 332, University of Gothenburg, Department of Economics.
  14. Veisten, Knut & Flügel, Stefan & Rizzi, Luis I. & Ortúzar, Juan de Dios & Elvik, Rune, 2013. "Valuing casualty risk reductions from estimated baseline risk," Research in Transportation Economics, Elsevier, vol. 43(1), pages 50-61.
  15. 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.
  16. Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(4), pages 597-624, August.
  17. Sund, Björn, 2009. "Sensitivity to scope in contingent valuation – introducing a flexible community analogy to communicate mortality risk reductions," Working Papers 2009:2, Örebro University, School of Business.

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