Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method
A cost-benefit analysis in a road safety context fundamentally analyzes the advantage of higher safety or lower risk. It can help determine if increasing spending on road safety programs is cost-effective. This study estimates the value of statistical life (VSL)—the amount of money that might be jus...
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Journal of Advanced Transportation |
| Online Access: | http://dx.doi.org/10.1155/2022/3047794 |
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| author | Anteneh Afework Mekonnen Abebe Dress Beza Tibor Sipos |
| author_facet | Anteneh Afework Mekonnen Abebe Dress Beza Tibor Sipos |
| author_sort | Anteneh Afework Mekonnen |
| collection | DOAJ |
| description | A cost-benefit analysis in a road safety context fundamentally analyzes the advantage of higher safety or lower risk. It can help determine if increasing spending on road safety programs is cost-effective. This study estimates the value of statistical life (VSL)—the amount of money that might be justified to save one person’s life. The VSL is calculated using the willingness to pay (WTP) data obtained through a contingent valuation survey. Three discrete choice models are developed: log-logistic, log-normal, and Weibull. The log-logistic model outperforms the log-normal and Weibull models, comparing Akaike’s Information Criterion (AIC) and Bayesian Information Criterion (BIC) values. We consider the log-logistic model’s mean and median WTP values to estimate the VSL value in the Ethiopian road transport safety context. The VSL estimate in the Ethiopian road transport safety context is 53.52 million ETB (USD 1.07 million). The respondents’ median WTP is ETB 714.44 (USD 14.23). Although the study is in Ethiopia, the findings can be applied to other low- and middle-income countries (LMICs) for the same purpose with modifications. The research findings will aid in a better understanding of the economic efficiencies of increased spending on road safety initiatives. Future research could compare current trends in road safety investment to the amount that should be spent based on the economic justifications from this study. |
| format | Article |
| id | doaj-art-0ea4e8d6c0c14a94bd3fa5fa3da17b96 |
| institution | OA Journals |
| issn | 2042-3195 |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Advanced Transportation |
| spelling | doaj-art-0ea4e8d6c0c14a94bd3fa5fa3da17b962025-08-20T02:02:37ZengWileyJournal of Advanced Transportation2042-31952022-01-01202210.1155/2022/3047794Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation MethodAnteneh Afework Mekonnen0Abebe Dress Beza1Tibor Sipos2Department of Transport Technology and EconomicsFaculty of Civil and Water Resources EngineeringDepartment of Transport Technology and EconomicsA cost-benefit analysis in a road safety context fundamentally analyzes the advantage of higher safety or lower risk. It can help determine if increasing spending on road safety programs is cost-effective. This study estimates the value of statistical life (VSL)—the amount of money that might be justified to save one person’s life. The VSL is calculated using the willingness to pay (WTP) data obtained through a contingent valuation survey. Three discrete choice models are developed: log-logistic, log-normal, and Weibull. The log-logistic model outperforms the log-normal and Weibull models, comparing Akaike’s Information Criterion (AIC) and Bayesian Information Criterion (BIC) values. We consider the log-logistic model’s mean and median WTP values to estimate the VSL value in the Ethiopian road transport safety context. The VSL estimate in the Ethiopian road transport safety context is 53.52 million ETB (USD 1.07 million). The respondents’ median WTP is ETB 714.44 (USD 14.23). Although the study is in Ethiopia, the findings can be applied to other low- and middle-income countries (LMICs) for the same purpose with modifications. The research findings will aid in a better understanding of the economic efficiencies of increased spending on road safety initiatives. Future research could compare current trends in road safety investment to the amount that should be spent based on the economic justifications from this study.http://dx.doi.org/10.1155/2022/3047794 |
| spellingShingle | Anteneh Afework Mekonnen Abebe Dress Beza Tibor Sipos Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method Journal of Advanced Transportation |
| title | Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method |
| title_full | Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method |
| title_fullStr | Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method |
| title_full_unstemmed | Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method |
| title_short | Estimating the Value of Statistical Life in a Road Safety Context Based on the Contingent Valuation Method |
| title_sort | estimating the value of statistical life in a road safety context based on the contingent valuation method |
| url | http://dx.doi.org/10.1155/2022/3047794 |
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