The Valuation of a Statistical Life in Road Safety: a Stated Choice Approach



The Valuation of a Statistical Life in Road Safety: a Stated Choice Approach

Authors

A de Blaeij, P Rietveld and E T Verhoef, Vrije Universiteit Amsterdam, NL

Description

Abstract

This paper reports on a study to estimate the value of a statistical life (VOSL) in the context of road safety in the Netherlands. A technique known as stated preference discrete choice modeling (stated choice) is used. Stated Choice is compatible with random utility modeling, which makes it applicable formonetary valuation. This is one of the first Stated Choice studies for the valuation of road safety. Furthermore, this study provides the first VOSL estimate for the Netherlands.

Data were gathered using an Internet questionnaire for a pre-selected representative set of respondents.The sample consists of 1055 respondents. Each respondent is asked to make a number of choices between two different roads, which differ in toll, safety and travel time. Each respondent has to make 10 choices, among which one making it possible to check for consistency. Because we include a moneyattribute, it is possible to calculate the money value of the other attributes, the value of time (VOT) and the VOSL.

We estimate a random utility model. The estimates imply that the VOSL is about 2.2 million Euro, the VOT is about 8.5 Euro per hour. To test whether there is heterogeneity in the respondents? VOSL and VOT, we estimate a random coefficient model, which estimates the distribution of the VOSL and VOT over the respondents.

Publisher

Association for European Transport