Estimating the Value of Life, Injury, and Travel Time Saved Using a Stated Preference Framework

Naghmeh Niroomand () and Glenn Jenkins ()
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Naghmeh Niroomand: Eastern Mediterranean University, North Cyprus

No 2015-08, Development Discussion Papers from JDI Executive Programs

Abstract: The incidence of death and injury from automobile accidents in North Cyprus is 3.6 times greater than the average for the EU. With the prospect of North Cyprus entering the EU, many investments will need to be undertaken in order to reduce these figures and reach EU norms. A key task will be to select the investments that are justified on the basis of a cost–benefit or cost–effectiveness analysis and not to waste resources through poor project selection. The objective of this study is to provide local estimates of the value of a statistical life and injury along with the value of time savings. These are among the key parameters needed for the evaluation of the benefits of such projects. In this study we conducted a stated choice experiment to identify the preferences and trade-offs of automobile drivers in North Cyprus for improved travel times, travel costs and safety. The choice of route was examined using mixed logit models to obtain the marginal utilities associated with each attribute of the routes that consumers choose. These estimates were used to assess the individuals’ willingness to pay (WTP) to avoid fatalities and injuries and to save travel time. We then used the results to obtain community-wide estimates of the value of a statistical life (VSL) saved, the value of injury (VI) prevented, and the value per hour of travel time saved.

Keywords: Willingness to pay; choice experiment; value of risk reduction; value of a statistical life; road safety; car drivers (search for similar items in EconPapers)
JEL-codes: D12 D61 J17 Q50 R41 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2015-08
New Economics Papers: this item is included in nep-dcm, nep-hea, nep-ias and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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