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The Value of Safety as Revealed in the Swedish Car Market: An Application of the Hedonic Pricing Approach

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  • Henrik Andersson

Abstract

In this article the hedonic regression technique is used to estimate the value of traffic safety, using information from the Swedish market for automobiles. The results from the study show that the market price of an automobile is negatively correlated with its inherent risk level, i.e. Swedish car consumers pay a safety premium for safer cars. In comparison to previous Swedish stated-preference studies, this study reveals a lower willingness to pay for additional car safety, which might be a result of the interaction between government interventions and individual self-insurance and self-protection. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Henrik Andersson, 2005. "The Value of Safety as Revealed in the Swedish Car Market: An Application of the Hedonic Pricing Approach," Journal of Risk and Uncertainty, Springer, vol. 30(3), pages 211-239, May.
    • Handle: RePEc:kap:jrisku:v:30:y:2005:i:3:p:211-239
    DOI: 10.1007/s11166-005-1154-1
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