Is Transport Safety More Valuable in the Air?
- Cite this article as:
- Carlsson, F., Johansson-Stenman, O. & Martinsson, P. Journal of Risk and Uncertainty (2004) 28: 147. doi:10.1023/B:RISK.0000016141.88127.7c
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Using a contingent valuation survey, people's willingness to pay for a given risk reduction is found to be much larger, consistently more than two times as large, when traveling by air compared to by taxi. Follow-up questions revealed that an important reason for this discrepancy is that many experience a higher mental suffering from flying, and that they are willing to pay to reduce this suffering. It was also consistently found that people are willing to pay more for a certain risk reduction if the original price was higher. Policy implications are discussed.