By Nils C. Soguel (auth.), Nathalie G. Schwab Christe, Nils C. Soguel (eds.)
Over the previous 20 years, financial idea has prolonged its box of program to non-market items equivalent to environmental assets and well-being. even though it is very unlikely to assign a value to those items at the foundation of industry mechanisms by myself, the truth that they've got no expense doesn't suggest that they've no price. One process during which economists have proven a marked curiosity is the contingent valuation approach (CVM), which has almost always been used to assign a financial worth to environmental items. It used to be first utilized to ordinary assets used for leisure reasons. CVM has been utilized to overall healthiness just recently, in order that reports during this box are fairly extra scarce than these facing the surroundings, even if a number of valuation method surveys can be found.
There has hitherto been no e-book which has drawn jointly and analyzed contemporary contingent valuations within the box of delivery injuries. Contingent Valuation, shipping safeguard and the price of Life offers an outline of the experiments carried out in Europe (Denmark, France, the U.K., Sweden and Switzerland). whereas a few contributions are severe, others express how the estimates acquired within the sector of street delivery can be utilized to evaluate the opposed future health results of alternative reasons, akin to public shipping injuries or pollution.
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Extra info for Contingent Valuation, Transport Safety and the Value of Life
This approach involves several dangers, however. It is possible that in the eyes of some respondents everyone would benefit from the risk reduction and that this may be a source of strategic bias. To avoid this problem, certain precautions had to be taken to ensure that the respondent classed the improvement in safety presented to him as a personal gain (private good) despite the general character of its wording. To achieve this, we drew up a list (card C) showing the conditions the respondent had to fulfil for each valuation.
By calculating marginal rates of substitution (MRS) between income and risk reduction the differences in initial risks are taken into account. Estimated marginal rates of substitution The marginal rate at which the respondents are willing to substitute income for improved traffic safety can be calculated by dividing WTP \vith the change in risk (~p) for which the respondents pay: WTP MRS=~p (1) Because the relative risk reduction (:rt) varies between questions G) about the risk of fatal injuries and because the subjective initial risk (p) and the proportion of the total number of kilometres for which the risk was reduced (y) vary between respondents (i) the MRS was calculated as: MRSr = ~ WTPij :rtj"Pi"Yij (2) The estimated mean and median MRS are presented in Table IV and Table v.
2%. The questionnaire included 21 general questions, 11 questions about the value of different kinds of health care and 24 questions about traffic safety. The mean interview time was 43 minutes. 05) from the rest of the Danish population above the age of 18 as regards age, sex, income, and number of kilometres driven by car3. The respondents were informed that the objective risk of being killed in a traffic accident in Denmark per year is 11 in 100,000. Then the respondents were asked about their subjective risk relative to the objective risk.
Contingent Valuation, Transport Safety and the Value of Life by Nils C. Soguel (auth.), Nathalie G. Schwab Christe, Nils C. Soguel (eds.)