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Valuation of road safety effects in cost-benefit analysis

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  • Wijnen, Wim
  • Wesemann, Paul
  • de Blaeij, Arianne

Abstract

Cost-benefit analysis is a common method for evaluating the social economic impact of transport projects, and in many of these projects the saving of human lives is an issue. This implies, within the framework of cost-benefit analysis, that a monetary value should be attached to saving human lives. This paper discusses the [`]Value of a Statistical Life' (VoSL), a concept that is often used for monetising safety effects, in the context of road safety. Firstly, the concept of [`]willingness to pay' for road safety and its relation to the VoSL are explained. The VoSL approach will be compared to other approaches to monetise safety effects, in particular the human capital approach and [`]quality adjusted life years'. Secondly, methods to estimate the VoSL and their applicability to road safety will be discussed. Thirdly, the paper reviews the VoSL estimates that have been found in scientific research and compares them with the values that are used in policy evaluations. Finally, a VoSL study in the Netherlands will be presented as a case study, and its applicability in policy evaluation will be illustrated.

Suggested Citation

  • Wijnen, Wim & Wesemann, Paul & de Blaeij, Arianne, 2009. "Valuation of road safety effects in cost-benefit analysis," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 326-331, November.
    • Handle: RePEc:eee:epplan:v:32:y:2009:i:4:p:326-331
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    References listed on IDEAS

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    1. Jaithri Ananthapavan & Marj Moodie & Andrew J. Milat & Rob Carter, 2021. "Systematic Review to Update ‘Value of a Statistical Life’ Estimates for Australia," IJERPH, MDPI, vol. 18(11), pages 1-17, June.
    2. Kwasi Gyau Baffo Awuah & Felix Hammond & Jessica Lamond & Colin Booth, 2013. "Estimating the Benefits of Sub-Saharan Africa Urban Land Use Planning System: A Methodological Discussion," ERES eres2013_30, European Real Estate Society (ERES).
    3. Tscharaktschiew, Stefan, 2016. "The private (unnoticed) welfare cost of highway speeding behavior from time saving misperceptions," Economics of Transportation, Elsevier, vol. 7, pages 24-37.
    4. Marija Bockarjova & Piet Rietveld & Erik T. Verhoef, 2012. "Composite Valuation of Immaterial Damage in Flooding: Value of Statistical Life, Value of Statistical Evacuation and Value of Statistical Injury," Tinbergen Institute Discussion Papers 12-047/3, Tinbergen Institute.
    5. Mouter, Niek & van Cranenburgh, Sander & van Wee, Bert, 2017. "Do individuals have different preferences as consumer and citizen? The trade-off between travel time and safety," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 333-349.

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