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The Value of a Statistical Life in Sweden Estimates from Two Studies using the "Certainty Approach" Calibration

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  • Svensson, Mikael

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

Abstract

Stated preference methods using surveys to elicit willingness to pay have been shown to suffer from hypothetical bias and scope/scale bias. Hypothetical bias usually means that willingness to pay is exaggerated in the hypothetical scenario and scope/scale bias means that there is an insensitivity in willingness to pay with regard to the amount of goods or the size of a good being valued. Experimental results in social psychology and economics have shown that only trusting the most certain respondents can potentially solve the problem with hypothetical bias and scope/scale bias. This paper presents the results of two different surveys in Sweden estimating the willingness to pay to reduce traffic mortality risks by only including the most certain respondents. Using the full sample, estimates of VOSL are $4.2 and $7.3 million. Estimates of VOSL on the subset of the samples only including the most certain respondents are lower and consistent between the two surveys with values of $2.9 and $3.1 million.

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Bibliographic Info

Paper provided by Örebro University, School of Business in its series Working Papers with number 2006:6.

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Length: 22 pages
Date of creation: 27 Sep 2006
Date of revision: 25 Jul 2007
Publication status: Published in Accident Analysis & Prevention, 2009, pages 430-437.
Handle: RePEc:hhs:oruesi:2006_006

Note: Published:Svensson, M., (2009), “The value of a statistical life in Sweden: Estimates from two studies using the “Certainty Approach” calibration”, Accident Analysis & Prevention, Vol 41(3): 430-437.
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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Related research

Keywords: Value of a Statistical Life; Contingent Valuation; Hypothetical Bias; Calibration; Certainty Approach;

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References

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Citations

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Cited by:
  1. John C. Whitehead & O. Ashton Morgan & William L. Huth & Gregory S. Martin & Richard Sjolander, 2012. "Willingness-to-Pay for Oyster Consumption Mortality Risk Reductions," Working Papers 12-07, Department of Economics, Appalachian State University.
  2. 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.
  3. Marija Bockarjova & Piet Rietveld & Erik T. Verhoef, 2012. "Composite Valuation of Immaterial Damage in Flooding: Value of Statistical Life, Value of Statistical Evacuation and Value of Statistical Injury," Tinbergen Institute Discussion Papers 12-047/3, Tinbergen Institute.
  4. Nicolas Jacquemet & Alexander James & Stephane Luchini & Jason Shogren, 2010. "Referenda under Oath," Working Papers halshs-00490448, HAL.
  5. Persson, Mattias & Svensson, Mikael, 2013. "The willingness to pay to reduce school bullying," Economics of Education Review, Elsevier, vol. 35(C), pages 1-11.
  6. 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.
  7. Sund, Björn, 2009. "Certainty calibration in contingent valuation - exploring the within-difference between dichotomous choice and open-ended answers as a certainty measure," Working Papers 2009:1, Örebro University, School of Business.

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