The value of safety or the value of the good?

Linda Andersson Järnberg (), Daniela Andrén (), Maria Börjesson (), Lars Hultkrantz (), Elisabet Rutström () and Elin Vimefall ()
Additional contact information
Linda Andersson Järnberg: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden, https://www.oru.se/english/employee/linda_andersson
Maria Börjesson: Linköping University, Postal: Linköping University, Department of Management and Engineering (IEI), SE-581 83 Linköping, Sweden, https://liu.se/en/employee/marbo25
Lars Hultkrantz: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden, https://www.oru.se/english/employee/lars_hultkrantz
Elisabet Rutström: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden, https://www.oru.se/english/employee/elisabet_rutstrom
Elin Vimefall: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden, https://www.oru.se/english/employee/elin_vimefall

No 2024:11, Working Papers from Örebro University, School of Business

Abstract: This study analyzes how the willingness to pay (WTP) for a risk reduction for traffic accidents varies depending on the specific traffic safety measures and whether they are framed as public or private goods. Building on previous studies, we designed and conducted a contingent valuation survey targeting a representative sample of the Swedish population, assessing WTP for eight different measures aimed at increasing the safety of vulnerable road users. Our findings reveal that while keeping the risk reduction constant, WTP is higher for well-established traffic safety measures, such as anti-slip treatments and improved lighting. Conversely, new technologies, like mobile apps and sensors, elicit lower WTP. However, respondents express a higher WTP when these technological measures are provided as a public good. These results suggest that acceptance and perceived reliability of the measures significantly influence WTP. The findings have important implications for cost-benefit analyses and evidence-based policymaking in transportation safety, particularly regarding the implementation of new technology in road safety infrastructure.

Keywords: traffic safety; willingness to pay; public good; private good; infrastructure; bicyclists and pedestrians; interval regression (search for similar items in EconPapers)
JEL-codes: D12 H41 R41 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2024-12-10
New Economics Papers: this item is included in nep-dcm and nep-tre
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Working Paper: The value of safety or the value of the good? (2024)
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