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Are Some Lives More Valuable?

Author

Listed:
  • Johansson-Stenman, Olof

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Martinsson, Peter

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

A theoretical model of the ethical preferences of individuals is tested by conducting a choice experiment on safety-enhancing road investments. The relative value of a saved life is found to decrease with age, such that the present value of a saved year of life is almost independent of age at a pure rate of time preference of a few percent, and a saved car driver is valued 17-31% lower than a pedestrian of the same age. Moreover, individuals’ ethical preferences seem to be fairly homogenous.

Suggested Citation

  • Johansson-Stenman, Olof & Martinsson, Peter, 2003. "Are Some Lives More Valuable?," Working Papers in Economics 96, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0096
    Note: Published in Journal of Health Economics, 2208, Vol. 27, pp. 739-752.
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    References listed on IDEAS

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    1. Hammar, Henrik & Jagers, Sverker C., 2007. "What is a fair CO2 tax increase? On fair emission reductions in the transport sector," Ecological Economics, Elsevier, vol. 61(2-3), pages 377-387, March.

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    More about this item

    Keywords

    Ethics; social preferences; individual social welfare function; relative value of life; random ethical model;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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