Is Transport Safety More Valuable in the Air?
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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.
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- Is Transport Safety More Valuable in the Air?
Journal of Risk and Uncertainty
Volume 28, Issue 2 , pp 147-163
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- Kluwer Academic Publishers
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- contingent valuation
- value of a statistical life
- willingness to pay
- bad deaths
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