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The value of safety or the value of the good?

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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.

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  • Andersson Järnberg, Linda & Andrén, Daniela & Börjesson, Maria & Hultkrantz, Lars & Rutström, Elisabet & Vimefall, Elin, 2024. "The value of safety or the value of the good?," Working Papers 2024:11, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2024_011
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    1. Johansson-Stenman, Olof & Martinsson, Peter, 2008. "Are some lives more valuable? An ethical preferences approach," Journal of Health Economics, Elsevier, vol. 27(3), pages 739-752, May.
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    4. Fredrik Carlsson & Dinky Daruvala & Henrik Jaldell, 2010. "Value of Statistical Life and Cause of Accident: A Choice Experiment," Risk Analysis, John Wiley & Sons, vol. 30(6), pages 975-986, June.
    5. Jones-Lee, M W & Hammerton, M & Philips, P R, 1985. "The Value of Safety: Results of a National Sample Survey," Economic Journal, Royal Economic Society, vol. 95(377), pages 49-72, March.
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    More about this item

    Keywords

    traffic safety; willingness to pay; public good; private good; infrastructure; bicyclists and pedestrians; interval regression;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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