Title: ESTIMATING VALUE OF STATISTICAL LIFE AND DEATH RISK EQUIVALENTS IN ROAD TRAFFIC, WITH THE METHODS CONJOINT ANALYSIS, RISK-RISK TRADE OFF AND STANDARD GAMBLE: A PILOT STUDY
Abstract: The objective of this pilot study is to increase the knowledge of different methods and their suitability for estimating death risk equivalents as well as value of a statistical life regarding road traffic accidents. The methods conjoint analysis, standard gamble and risk-risk trade off are used in the study. A second objective of the study is to compare the results with a contingent valuation study by Persson et al (2000). The study includes 200 interviews. For each of the three methods, games for fatal, serious and slight road traffic injuries were constructed. In conjoint analysis and risk-risk trade off the respondents had to suppose that they were going to move to another living area or purchase a safety device. Consequently they could not choose whether they wanted to buy the good or not. Moreover, in these methods a risk reduction was valued and therefore no accident had yet occurred and it was not sure if it would. However, in the standard gamble method the respondent was already injured in a road accident and he had to choose whether he would accept a treatment or not. In the contingent valuation study by Persson et al (2000) the respondents were asked how much they were willing to pay for reducing their own risk of being injured or killed in a traffic accident. The respondents had the opportunity to choose not to pay anything. This differs from the methods used in the pilot study and the results show that it is important to notice all these differences when comparing the methods. Both the contingent valuation and conjoint analysis methods can be used for estimating values of a statistical life, i.e. the marginal rate of substitution of wealth for risk. The estimates from conjoint analysis in this pilot study are all higher than those from the contingent valuation method estimated in Persson et al (2000). Furthermore, the empirical findings indicate that the ratios for different state of health in relation to death, the death risk equivalents, are similar for both conjoint analysis and contingent valuation while the values are higher with risk-risk trade off. Standard gamble, which is not comparable with the other methods since the starting point differs, showed that the death risk equivalent for a slight injury is higher with this method than with the other methods. (A)
Publication Year: 1999
Publication Date: 1999-01-01
Language: en
Type: article
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