scholarly journals Willingness to Accept Equals Willingness to Pay for Labor Market Estimates of the Value of Statistical Life

2012 ◽  
Author(s):  
Thomas J. Kniesner ◽  
W. Kip Viscusi ◽  
James P. Ziliak
Keyword(s):  
Labor Market ◽  
Willingness To Pay ◽  
Willingness To Accept ◽  
Value Of Statistical Life ◽  
Statistical Life

scholarly journals Study on Motorcycle Crash Cost in Bandung City

2021 ◽  
Vol 28 (1) ◽  
pp. 17-22
Author(s):  
Safety Husna Pangestika ◽  
Aine Kusumawati ◽  
Ade Sjafruddin
Keyword(s):  
Human Capital ◽  
Willingness To Pay ◽  
Unit Cost ◽  
Human Capital Approach ◽  
Value Of Statistical Life ◽  
Statistical Life ◽  
Fatal Crash ◽  
Local Roads ◽  
Human Cost ◽  
Serious Injury

Crash cost is an important component for conducting economic analysis in selecting countermeasures for crash locations. It is used to convert the benefit of crash or fatality reduction into monetary terms. Many research on crash cost have been carried out in Indonesia. Most of the research utilized gross output/human capital approach. However, this approach has been widely criticized for not being able to describe the quality of life of crash casualties and the costs of pain, grief and suffering (i.e. human cost). The concept of Value of Statistical Life  (VoSL) has been introduced by InDeV (2016) to calculate the human cost, which is assessed by using willingness to pay approach. To obtain a more reliable estimation of crash cost for Indonesia, it is necessary to conduct a study on crash cost involving motorcycles which incorporates the estimation of human cost. The VoSL is obtained by interviewing motorcycle users for willingness to pay with safety equipment. Based on the analysis, it is obtained that the value of statistical life (VoSL) for fatality in a road crash was estimated to be Rp.2.3 billion. The unit cost of fatal injury is Rp.3.08 billion, serious injury is Rp.333 million and slight injury is Rp.24.9 million. The unit cost of fatal crash on arterial roads is Rp.3.23 billion, serious crash is Rp.451 million and the slight crash is Rp.114 million. The unit cost of fatal crash on collector roads is Rp.3.16 billion, serious crashes is Rp.381 million and minor crash is Rp.69.4 million. The unit cost of fatal crash on local roads is Rp.3.09 billion, serious crash is Rp.338 million, and minor crash is Rp.29.8 million. Keywords: Motorcycle crash cost, gross output approach, human capital approach, willingness to pay approach

Reference-Dependence Effects in Benefit Assessment: Beyond the WTA–WTP Dichotomy and WTA–WTP Ratios

2015 ◽  
Vol 6 (1) ◽  
pp. 187-206 ◽  
Author(s):  
W. Kip Viscusi
Keyword(s):  
Water Quality ◽  
Labor Market ◽  
Experimental Evidence ◽  
Empirical Evidence ◽  
Reference Point ◽  
Willingness To Accept ◽  
Reference Dependence ◽  
Statistical Life ◽  
The Cost

Willingness-to-pay (WTP) values and willingness-to-accept (WTA) values have received considerable attention, but the role of reference-dependence effects is more diverse. Policies involving cost and risk may have reference point effects with respect to both cost and risk, leading to four potential valuation measures. Experimental evidence for water quality policies suggests that the cost reference effects are particularly influential in that context. There is, however, no evidence of significant reference effects for labor market estimates of the value of a statistical life. Sound application of benefit values other than WTP measures requires pertinent empirical evidence and an assessment of the underlying rationality of the determinants of the reference-dependence effects.

scholarly journals Building a Set of Internationally Comparable Value of Statistical Life Studies: Estimates of Chinese Willingness to Pay to Reduce Mortality Risk

2017 ◽  
Vol 8 (2) ◽  
pp. 251-289 ◽  
Author(s):  
Sandra Hoffmann ◽  
Alan Krupnick ◽  
Ping Qin
Keyword(s):  
United States ◽  
Willingness To Pay ◽  
Mortality Risk ◽  
Stated Preference ◽  
The United States ◽  
Value Of Statistical Life ◽  
Middle Income ◽  
Payment Card ◽  
Statistical Life ◽  
Chinese Study

This study is the eighth in a series of stated-preference studies designed to enhance the basis for international benefits transfer of value of statistical life (VSL) estimates. The series has fielded essentially similar stated-preference surveys in Canada, China, France, Italy, Japan, Mongolia, the United Kingdom, and the United States. This Chinese study estimates the willingness to pay for contemporaneous and future mortality risk reductions of residents of Shanghai, Jiujiang, and Nanning, China using a stated-preference payment-card survey. The pooled VSL for a contemporaneous reduction in annual mortality risk reduction of 5 in 10,000 is about 1.47 million 2009 yuan ($614,805 U.S. $2016), with income elasticities of 0.2 to 0.25. This VSL estimate is at the lower end of estimates from the eight countries, between those from Mongolia and Japan, and in the mid-range of estimates of willingness to pay (WTP) for mortality risk reductions as a percentage of household income. We find lower discount rates in the Mongolia, Japan, and China studies than in those fielded in North America or Europe. The study also explores the relative performance of dichotomous choice and stated-preference card elicitation methods in a middle income country setting and develops a computerized “payment card” that allows testing for anchoring. Implicit transfer elasticities across countries, calculated using the VSLs we estimate and each country’s income, relative to those of the United States, yields estimates of 0.88–0.95 for the lower income countries. These compare with the default assumption of 1.0 or assumed elasticities of 1.2 for developing countries.

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