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Willingness to Pay for a Reduction in Road Mortality Risk: Evidence from Sweden

Andersson, Henrik LU (2005) In Lund Economic Studies 126
Abstract (Swedish)
Popular Abstract in Swedish

Denna avhandling består av ett introduktionskapitel, följt av tre kapitel i vilka individens betalningsvilja för att reducera väg- och personbildödsrisken skattas, baserat både på observerade och hypotetiska val.



I kapitel 2 används den hedoniska regressionstekniken på den svenska personbilsmarknaden för att skatta värdet av trafiksäkerhet. Resultaten från studien visar att marknadspriset på en personbil är negativt korrelerat med dess risknivå, dvs svenska personbilskonsumenter betalar en säkerhetspremie för säkrare bilar. I jämförelse med tidigare svenska hypotetiska betalningsviljestudier, implicerar denna studie en lägre betalningsvilja för ytterligare säkerhet, vilket kan... (More)
Popular Abstract in Swedish

Denna avhandling består av ett introduktionskapitel, följt av tre kapitel i vilka individens betalningsvilja för att reducera väg- och personbildödsrisken skattas, baserat både på observerade och hypotetiska val.



I kapitel 2 används den hedoniska regressionstekniken på den svenska personbilsmarknaden för att skatta värdet av trafiksäkerhet. Resultaten från studien visar att marknadspriset på en personbil är negativt korrelerat med dess risknivå, dvs svenska personbilskonsumenter betalar en säkerhetspremie för säkrare bilar. I jämförelse med tidigare svenska hypotetiska betalningsviljestudier, implicerar denna studie en lägre betalningsvilja för ytterligare säkerhet, vilket kan vara ett resultat av interaktionen mellan svenska myndigheters interventioner och individers marknadsbeslut.



Kapitel 3 utnyttjar ett sammanslaget datamaterial från två svenska betalningsviljestudier för trafiksäkerhet och skattar en marginell betalningsviljefunktion för reducering av vägdödsrisken. Observerad marginell betalningsvilja från den svenska personbilsmarknaden används och resultaten visar att betalningsviljan ökar med bilens risknivå. Bland ägarattributen har inkomst och bakgrundrisk förväntade koefficienttecken, dvs inkomst ökar betalningsviljan, medan bakgrundrisk minskar betalningsviljan. Enbart bakgrundrisk har dock en statistiskt signifikant påverkan på betalningsviljan. Vi finner också genom att jämföra ett värde på ickemarginell betalningsvilja skattat med den marginella betalningsviljefunktionen och ett värde skattad baserat på marginell betalningsvilja, att skillnaden mellan de båda riskvärdena är liten och försumbar. Detta är var vi förväntar.



I kapitel 4 studerar vi hur hypotetisk betalningsvilja för en reduktion av dödrisk varierar med olika individattribut och hur subjektiv dödsrisk avviker från objektiv (statistisk) dödsrisk. Data från en svensk contingent valuation studie används och vi finner att det finns ett svagt samband att betalningsviljan avtar med individens ålder samt bakgrundrisk. Vi finner dock ingen korrelation mellan individens självskattade hälsostatus och hand/hennes betalningsvilja för att reducera dödsrisken i vägtrafiken. Vad gäller subjektiv riskuppfattning så finner vi att respondenterna underskattar deras dödrisk, både väg- och totalrisk, jämfört med den objektiva dödsrisken i Sverige vid studiens genomförande. (Less)
Abstract
The thesis consists of an introductory chapter, followed by three chapters in which willingness to pay (WTP) for a reduction in car- and road-mortality risk is estimated using both revealed- and stated-preference methods.



In chapter 2 the hedonic regression technique is used to estimate the value of traffic safety, using information from the Swedish market for automobiles. The results from the study show that the market price of an automobile is negatively correlated with its inherent risk level, i.e. Swedish car consumers pay a safety premium for safer cars. In comparison to previous Swedish stated-preference studies, this study reveals a lower willingness to pay for additional car safety, which might be a result of the... (More)
The thesis consists of an introductory chapter, followed by three chapters in which willingness to pay (WTP) for a reduction in car- and road-mortality risk is estimated using both revealed- and stated-preference methods.



In chapter 2 the hedonic regression technique is used to estimate the value of traffic safety, using information from the Swedish market for automobiles. The results from the study show that the market price of an automobile is negatively correlated with its inherent risk level, i.e. Swedish car consumers pay a safety premium for safer cars. In comparison to previous Swedish stated-preference studies, this study reveals a lower willingness to pay for additional car safety, which might be a result of the interaction between government interventions and individual self-insurance and self-protection.



Chapter 3, using a pooled data set from two Swedish marginal WTP studies, estimates a marginal WTP function for a road-mortality risk reduction. Observed marginal WTP from the Swedish car market is used and found to be positively correlated with the baseline risk of the cars. Among owner attributes, both income and background risk have the expected sings, i.e. income is found to increase marginal WTP, whereas background risk reduces marginal WTP. However, only background risk is found to have a significant effect on marginal WTP. Also, when comparing the estimated monetary value of a non-marginal risk reduction by using the marginal WTP function with an estimate based on marginal WTP, we find that the estimates are different but that the difference is modest. This is in line with expectations.



In chapter 4 we examine how WTP for a reduction in road mortality risk varies with different individual characteristics and how subjective mortality-risk estimates differ from objective (statistical) mortality-risk values. Using data from a Swedish contingent valuation study, we find some support that WTP declines with age and background risk, but we find no correlation between health status and WTP. Further, we find that respondents underassess their own mortality risks, both road- and total-mortality risks, compared to the objective risk measures for Sweden at the time of the survey. (Less)
Please use this url to cite or link to this publication:
author
supervisor
opponent
  • Professor Eeckhoudt, Louis, FUCAM, Belgium
organization
publishing date
type
Thesis
publication status
published
subject
keywords
Willingness to Pay, Value of a Statistical Life, Revealed preferences, Stated preferences, economic systems, economic theory, econometrics, Economics, ekonomisk teori, ekonometri, ekonomisk politik, ekonomiska system, economic policy, Nationalekonomi, Road-mortality risk
in
Lund Economic Studies 126
pages
98 pages
publisher
Department of Economics, Lund Universtiy
defense location
EC3:211, Holger Crafoords Ekonomicentrum
defense date
2005-04-08 10:15
ISSN
0460-0029
language
English
LU publication?
yes
id
7bf0bd19-52ea-4553-8b1f-5344fc7f73b4 (old id 544502)
date added to LUP
2007-09-27 11:07:46
date last changed
2016-09-19 08:44:54
@phdthesis{7bf0bd19-52ea-4553-8b1f-5344fc7f73b4,
  abstract     = {The thesis consists of an introductory chapter, followed by three chapters in which willingness to pay (WTP) for a reduction in car- and road-mortality risk is estimated using both revealed- and stated-preference methods.<br/><br>
<br/><br>
In chapter 2 the hedonic regression technique is used to estimate the value of traffic safety, using information from the Swedish market for automobiles. The results from the study show that the market price of an automobile is negatively correlated with its inherent risk level, i.e. Swedish car consumers pay a safety premium for safer cars. In comparison to previous Swedish stated-preference studies, this study reveals a lower willingness to pay for additional car safety, which might be a result of the interaction between government interventions and individual self-insurance and self-protection.<br/><br>
<br/><br>
Chapter 3, using a pooled data set from two Swedish marginal WTP studies, estimates a marginal WTP function for a road-mortality risk reduction. Observed marginal WTP from the Swedish car market is used and found to be positively correlated with the baseline risk of the cars. Among owner attributes, both income and background risk have the expected sings, i.e. income is found to increase marginal WTP, whereas background risk reduces marginal WTP. However, only background risk is found to have a significant effect on marginal WTP. Also, when comparing the estimated monetary value of a non-marginal risk reduction by using the marginal WTP function with an estimate based on marginal WTP, we find that the estimates are different but that the difference is modest. This is in line with expectations.<br/><br>
<br/><br>
In chapter 4 we examine how WTP for a reduction in road mortality risk varies with different individual characteristics and how subjective mortality-risk estimates differ from objective (statistical) mortality-risk values. Using data from a Swedish contingent valuation study, we find some support that WTP declines with age and background risk, but we find no correlation between health status and WTP. Further, we find that respondents underassess their own mortality risks, both road- and total-mortality risks, compared to the objective risk measures for Sweden at the time of the survey.},
  author       = {Andersson, Henrik},
  issn         = {0460-0029},
  keyword      = {Willingness to Pay,Value of a Statistical Life,Revealed preferences,Stated preferences,economic systems,economic theory,econometrics,Economics,ekonomisk teori,ekonometri,ekonomisk politik,ekonomiska system,economic policy,Nationalekonomi,Road-mortality risk},
  language     = {eng},
  pages        = {98},
  publisher    = {Department of Economics, Lund Universtiy},
  school       = {Lund University},
  series       = {Lund Economic Studies 126},
  title        = {Willingness to Pay for a Reduction in Road Mortality Risk: Evidence from Sweden},
  year         = {2005},
}