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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.

Suggested Citation

  • 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 12 May 2009.
  • 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.
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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. Nicolas Jacquemet & Alexander James & Stephane Luchini & Jason Shogren, 2010. "Referenda under Oath," Working Papers halshs-00490448, HAL.
    3. Nicolas Jacquemet & Alexander James & Stéphane Luchini & Jason F. Shogren, 2017. "Referenda Under Oath," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 479-504, July.
    4. Olofsson , Sara & Gerdtham, Ulf-G. & Hultkrantz, Lars & Persson, Ulf, 2016. "Measuring the End of Life Premium in Cancer using Individual ex ante Willingness to Pay," Working Papers 2016:23, Lund University, Department of Economics.
    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. 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.
    7. 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.
    8. Krüger, Niclas A. & Svensson, Mikael, 2009. "The impact of real options on willingness to pay for mortality risk reductions," Journal of Health Economics, Elsevier, vol. 28(3), pages 563-569, May.
    9. 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.
    10. Olofsson, Sara & Gerdtham , Ulf-G & Hultkrantz , Lars & Persson , Ulf, 2016. "Value of a QALY and VSI Estimated with the Chained Approach," Working Papers 2016:33, Lund University, Department of Economics.
    11. Olofsson , Sara & Gerdtham, Ulf-G. & Hultkrantz, Lars & Persson, Ulf, 2016. "Dread and Risk Elimination Premium for the Value of a Statistical Life," Working Papers 2016:22, Lund University, Department of Economics.
    12. Hultkrantz, Lars & Shengcong, Xue, 2009. "Mitigating Hypothetical Bias in Value of Time Studies: Lab-Experiment Results," Working Papers 2009:14, Örebro University, School of Business, revised 01 Nov 2010.
    13. 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.
    14. Olofsson, Sara & Gerdtham , Ulf-G & Hultkrantz , Lars & Persson , Ulf, 2016. "Chained Approach vs Contingent Valuation for Estimating the Value of Risk Reduction," Working Papers 2016:34, Lund University, Department of Economics.
    15. 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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    Keywords

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

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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