Advanced Search
MyIDEAS: Login to save this paper or follow this series

How to Make a Public Choice About the Value of a Statistical Life: The Case of Road Safety

Contents:

Author Info

  • Georges Dionne

    ()
    (HEC Montréal)

  • Paul Lanoie

    ()
    (IEA, HEC Montréal)

Abstract

Cost-benefit analysts involved in evaluating projects influencing the risk of death and injury have access to a wide group of studies that provide a large range of estimates of the value of a statistical life (VOSL). It is of course a difficult task to pick the right estimate. This paper discusses the potential avenues available to analysts looking for values of a statistical life and of injuries to be used in cost-benefit analyses of Quebec projects involving changes in road safety. Actually, the discussion is conducted in the context of Quebec, but most of it could easily apply to the rest of Canada. First, we discuss the relevance of looking for an original set of estimates involving a new study and the collection of new data. We present many arguments in favour of such a strategy. Second, if the time or the resources necessary to conduct a new study are not available, we offer an analytical framework that allows one to make a choice of estimates (or of a range of estimates) from existing studies. We conclude that a VOSL of 5 million dollars (CAN $, 2000) would be acceptable. Another contribution of this paper is to present, to our knowledge, the most up-to-date survey of studies on the value of a statistical life covering more than 85 papers.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.hec.ca/iea/cahiers/2002/iea0204_pl.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Patricia Power)
Download Restriction: no

Bibliographic Info

Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 02-04.

as in new window
Length: 34 pages
Date of creation: May 2002
Date of revision:
Handle: RePEc:iea:carech:0204

Contact details of provider:
Postal: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
Phone: (514) 340-6463
Fax: (514) 340-6469
Email:
Web page: http://www.hec.ca/iea/
More information through EDIRC

Order Information:
Postal: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
Email:

Related research

Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Gerking, S.D. & Haan, M. de & Schulze, W.D., 1988. "The marginal value of job safety: A contingent valuation study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742815, Tilburg University.
  2. Kip Viscusi, W. & Magat, Wesley A. & Huber, Joel, 1991. "Pricing environmental health risks: survey assessments of risk-risk and risk-dollar trade-offs for chronic bronchitis," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 32-51, July.
  3. Ghosh, Debapriya & Lees, Dennis & Seal, William, 1975. "Optimal Motorway Speed and Some Valuations of Time and Life," The Manchester School of Economic & Social Studies, University of Manchester, vol. 43(2), pages 134-43, June.
  4. Jones-Lee, M W & Hammerton, M & Philips, P R, 1985. "The Value of Safety: Results of a National Sample Survey," Economic Journal, Royal Economic Society, vol. 95(377), pages 49-72, March.
  5. Dionne, G. & St-Michel, P. & Gibbens, A., 1993. "An Economic Analysis of Insurance Fraud," Cahiers de recherche 93010, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  6. Arabsheibani, G R & Marin, A, 2000. " Stability of Estimates of the Compensation for Danger," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 247-69, May.
  7. Paul R. Portney, 1994. "The Contingent Valuation Debate: Why Economists Should Care," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 3-17, Fall.
  8. Gerking, Shelby & de Haan, Menno & Schulze, William, 1988. " The Marginal Value of Job Safety: A Contingent Valuation Study," Journal of Risk and Uncertainty, Springer, vol. 1(2), pages 185-99, June.
  9. Moore, Michael J. & Viscusi, W. Kip, 1990. "Discounting environmental health risks: New evidence and policy implications," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages S51-S62, March.
  10. W. Kip Viscusi, 1994. "Mortality Effects of Regulatory Costs and Policy Evaluation Criteria," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 94-109, Spring.
  11. R. A. Meng & Douglas A. Smith, 1990. "The Valuation of Risk of Death in Public Sector Decision-Making," Canadian Public Policy, University of Toronto Press, vol. 16(2), pages 137-144, June.
  12. Bowland, Bradley J. & Beghin, John C., 2001. "Robust estimates of value of a statistical life for developing economies," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 385-396, May.
  13. Keeney, Ralph L, 1994. "Mortality Risks Induced by the Costs of Regulations," Journal of Risk and Uncertainty, Springer, vol. 8(1), pages 95-110, January.
  14. Gegax, D. & Gerking, S.D. & Schulze, W.D., 1991. "Perceived risk and the marginal value of safety," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4628495, Tilburg University.
  15. Ludwig, Jens & Cook, Philip J, 2001. " The Benefits of Reducing Gun Violence: Evidence from Contingent-Valuation Survey Data," Journal of Risk and Uncertainty, Springer, vol. 22(3), pages 207-26, May.
  16. Weiss, P. & Maier, G. & Gerking, S.D., 1986. "The economic evaluation of job safety: A methodological survey and some estimates for Austria," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742810, Tilburg University.
  17. French, Michael T & Kendall, David L, 1992. " The Value of Job Safety for Railroad Workers," Journal of Risk and Uncertainty, Springer, vol. 5(2), pages 175-85, May.
  18. Craig A. Olson, 1981. "An Analysis of Wage Differentials Received by Workers on Dangerous Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 16(2), pages 167-185.
  19. Moore, Michael J & Viscusi, W Kip, 1990. " Models for Estimating Discount Rates for Long-term Health Risks Using Labor Market Data," Journal of Risk and Uncertainty, Springer, vol. 3(4), pages 381-401, December.
  20. Arianne de Blaeij & Raymond J.G.M. Florax & Piet Rietveld & Erik T. Verhoef, 2000. "The Value of Statistical Life in Road Safety: A Meta-Analysis," Tinbergen Institute Discussion Papers 00-089/3, Tinbergen Institute.
  21. Corso, Phaedra S & Hammitt, James K & Graham, John D, 2001. " Valuing Mortality-Risk Reduction: Using Visual Aids to Improve the Validity of Contingent Valuation," Journal of Risk and Uncertainty, Springer, vol. 23(2), pages 165-84, September.
  22. Garen, John, 1988. "Compensating Wage Differentials and the Endogeneity of Job Riskiness," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 9-16, February.
  23. Dillingham, Alan E, 1985. "The Influence of Risk Variable Definition on Value-of-Life Estimates," Economic Inquiry, Western Economic Association International, vol. 23(2), pages 277-94, April.
  24. Persson, Ulf, et al, 2001. " The Value of a Statistical Life in Transport: Findings from a New Contingent Valuation Study in Sweden," Journal of Risk and Uncertainty, Springer, vol. 23(2), pages 121-34, September.
  25. Arnould, Richard J & Nichols, Len M, 1983. "Wage-Risk Premiums and Workers' Compensation: A Refinement of Estimates of Compensating Wage Differential," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 332-40, April.
  26. Portney, Paul R., 1981. "Housing prices, health effects, and valuing reductions in risk of death," Journal of Environmental Economics and Management, Elsevier, vol. 8(1), pages 72-78, March.
  27. Brown, Charles, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 113-34, February.
  28. Dreyfus, Mark K & Viscusi, W Kip, 1995. "Rates of Time Preference and Consumer Valuations of Automobile Safety and Fuel Efficiency," Journal of Law and Economics, University of Chicago Press, vol. 38(1), pages 79-105, April.
  29. Viscusi, W Kip & Moore, Michael J, 1987. "Workers' Compensation: Wage Effects, Benefit Inadequacies, and the Value of Health Losses," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 249-61, May.
  30. Hersch, Joni & Pickton, Todd S, 1995. "Risk-Taking Activities and Heterogeneity of Job-Risk Tradeoffs," Journal of Risk and Uncertainty, Springer, vol. 11(3), pages 205-17, December.
  31. Siebert, W Stanley & Wei, X, 1994. "Compensating Wage Differentials for Workplace Accidents: Evidence for Union and Nonunion Workers in the UK," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 61-76, July.
  32. Jones-Lee, M W, 1992. "Paternalistic Altruism and the Value of Statistical Life," Economic Journal, Royal Economic Society, vol. 102(410), pages 80-90, January.
  33. Smith, V. Kerry, 1983. "The role of site and job characteristics in hedonic wage models," Journal of Urban Economics, Elsevier, vol. 13(3), pages 296-321, May.
  34. Blomquist, Glenn C, 1979. "Value of Life Saving: Implications of Consumption Activity," Journal of Political Economy, University of Chicago Press, vol. 87(3), pages 540-58, June.
  35. Michael J. Moore & W. Kip Viscusi, 1989. "Promoting Safety through Workers' Compensation: The Efficacy and Net Wage Costs of Injury Insurance," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 499-515, Winter.
  36. Garbacz, Christopher, 1989. "Smoke detector effectiveness and the value of saving a life," Economics Letters, Elsevier, vol. 31(3), pages 281-286, December.
  37. Lanoie, Paul & Pedro, Carmen & Latour, Robert, 1995. "The Value of a Statistical Life: A Comparison of Two Approaches," Journal of Risk and Uncertainty, Springer, vol. 10(3), pages 235-57, May.
  38. Jenni, Karen E & Loewenstein, George, 1997. "Explaining the "Identifiable Victim Effect."," Journal of Risk and Uncertainty, Springer, vol. 14(3), pages 235-57, May-June.
  39. Herzog, Henry W, Jr & Schlottmann, Alan M, 1990. "Valuing Risk in the Workplace: Market Price, Willingness to Pay, and the Optimal Provision of Safety," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 463-70, August.
  40. Ippolito, Pauline M. & Ippolito, Richard A., 1984. "Measuring the value of life saving from consumer reactions to new information," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 53-81, November.
  41. Dardis, Rachel, 1980. "The Value of a Life: New Evidence from the Marketplace," American Economic Review, American Economic Association, vol. 70(5), pages 1077-82, December.
  42. Christe, Nathalie G Schwab & Soguel, Nils C, 1996. "The Pain of Road-Accident Victims and the Bereavement of Their Relatives: A Contingent-Valuation Experiment," Journal of Risk and Uncertainty, Springer, vol. 13(3), pages 277-91, November.
  43. Felice Martinello & Ronald Meng, 1992. "Workplace Risks and the Value of Hazard Avoidance," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 333-45, May.
  44. Viscusi, W Kip & O'Connor, Charles J, 1984. "Adaptive Responses to Chemical Labeling: Are Workers Bayesian Decision Makers?," American Economic Review, American Economic Association, vol. 74(5), pages 942-56, December.
  45. Liu, Jin-Tan & Hammitt, James K. & Liu, Jin-Long, 1997. "Estimated hedonic wage function and value of life in a developing country," Economics Letters, Elsevier, vol. 57(3), pages 353-358, December.
  46. Sandy, Robert & Elliott, Robert F, 1996. "Unions and Risk: Their Impact on the Level of Compensation for Fatal Risk," Economica, London School of Economics and Political Science, vol. 63(250), pages 291-309, May.
  47. Needleman, Lionel, 1976. "Valuing Other People's Lives," The Manchester School of Economic & Social Studies, University of Manchester, vol. 44(4), pages 309-42, December.
  48. Gegax, Douglas & Gerking, Shelby & Schulze, William, 1991. "Perceived Risk and the Marginal Value of Safety," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 589-96, November.
  49. Paul Leigh, J., 1987. "Gender, firm size, industry, and estimates of the value-of-life," Journal of Health Economics, Elsevier, vol. 6(3), pages 255-273, September.
  50. Biddle, Jeff E & Zarkin, Gary A, 1988. "Worker Preferences and Market Compensation for Job Risk," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 660-67, November.
  51. Johannesson, Magnus & Johansson, Per-Olov, 1996. "To Be, or Not to Be, That Is the Question: An Empirical Study of the WTP for an Increased Life Expectancy at an Advanced Age," Journal of Risk and Uncertainty, Springer, vol. 13(2), pages 163-74, September.
  52. Viscusi, W Kip, 1994. "Risk-Risk Analysis," Journal of Risk and Uncertainty, Springer, vol. 8(1), pages 5-17, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Abdelaziz Benkhalifa & Mohamed Ayadi & Paul Lanoie, 2012. "Estimated hedonic wage function and value of life in an African country," Cahiers de recherche 12-01, HEC Montréal, Institut d'économie appliquée.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iea:carech:0204. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia Power).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.