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An overview of Value of Statistical Life Estimations- Transportation Perspective

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  • Rouhani, Omid

Abstract

In this paper, I review the value of statistical life (VOSL) definitions/concepts, mainly in the transportation context. After examining the concept, I provide a background, discussing how the estimates should be different for each case study. Next, I overview a variety of previous studies globally, focusing on their estimated values. Finally, I summarize a few interesting observations regarding this extremely important factor for public policy analyses. The adjusted 2024 VOSL in U.S. dollars ranges from 0.1 million in Russia to 32 million in Canada; 320 times difference! In fact, VOSL values differ substantially by income, age, and geographical region as well as the sector of concern. This conclusion significantly impacts the application of VOSL for social welfare evaluations of transportation projects.

Suggested Citation

  • Rouhani, Omid, 2024. "An overview of Value of Statistical Life Estimations- Transportation Perspective," MPRA Paper 123119, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123119
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    References listed on IDEAS

    as
    1. Viscusi, W Kip, 1993. "The Value of Risks to Life and Health," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1912-1946, December.
    2. Rouhani, Omid, 2022. "Are transportation solutions doomed to fail climate-change actions? A book review," MPRA Paper 115675, University Library of Munich, Germany.
    3. 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.
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    6. Sujitra Vassanadumrongdee & Shunji Matsuoka, 2005. "Risk Perceptions and Value of a Statistical Life for Air Pollution and Traffic Accidents: Evidence from Bangkok, Thailand," Journal of Risk and Uncertainty, Springer, vol. 30(3), pages 261-287, May.
    7. Nayer Daher & Farhana Yasmin & Min Ru Wang & Ehsan Moradi & Omid Rouhani, 2018. "Perceptions, Preferences, and Behavior Regarding Energy and Environmental Costs: The Case of Montreal Transport Users," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    8. Rouhani, Omid M. & Niemeier, Debbie, 2014. "Flat versus spatially variable tolling: A case study in Fresno, California," Journal of Transport Geography, Elsevier, vol. 37(C), pages 10-18.
    9. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    10. Fredrik Carlsson & Olof Johansson-Stenman & Peter Martinsson, 2004. "Is Transport Safety More Valuable in the Air?," Journal of Risk and Uncertainty, Springer, vol. 28(2), pages 147-163, March.
    11. Rouhani, Omid M. & Oliver Gao, H. & Richard Geddes, R., 2015. "Policy lessons for regulating public–private partnership tolling schemes in urban environments," Transport Policy, Elsevier, vol. 41(C), pages 68-79.
    12. Juan de Dios Ortúzar & Luis A Cifuentes & Huw C W L Williams, 2000. "Application of Willingness-to-Pay Methods to Value Transport Externalities in Less Developed Countries," Environment and Planning A, , vol. 32(11), pages 2007-2018, November.
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    14. Persson, Ulf & Norinder, Anna & Hjalte, Krister & Gralén, Katarina, 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 121-134, September.
    15. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    16. 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.
    17. Rouhani, Omid M., 2010. "Gas Consumption Information: A Substitute for Congestion Pricing?," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207246, Transportation Research Forum.
    18. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    19. W. Kip Viscusi, 2004. "The Value of Life: Estimates with Risks by Occupation and Industry," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 29-48, January.
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    21. Ali Mirchi & Saeed Hadian & Kaveh Madani & Omid M. Rouhani & Azadeh M. Rouhani, 2012. "World Energy Balance Outlook and OPEC Production Capacity: Implications for Global Oil Security," Energies, MDPI, vol. 5(8), pages 1-26, July.
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    24. repec:reg:rpubli:282 is not listed on IDEAS
    25. M. Rouhani, Omid, 2019. "Transportation Project Evaluation Methods/Approaches," MPRA Paper 91451, University Library of Munich, Germany.
    26. Omid M. Rouhani & H. Oliver Gao, 2016. "Evaluating Various Road Ownership Structures and Potential Competition on an Urban Road Network," Networks and Spatial Economics, Springer, vol. 16(4), pages 1019-1042, December.
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    29. Martin Weitzman, 2007. "Structural Uncertainty and the Value of Statistical Life in the Economics of Catastrophic Climate Change," NBER Working Papers 13490, National Bureau of Economic Research, Inc.
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    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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