Journal of Risk and Uncertainty

, Volume 28, Issue 2, pp 147–163

Is Transport Safety More Valuable in the Air?

Authors

    • Department of EconomicsGöteborg University
  • Olof Johansson-Stenman
    • Department of EconomicsGöteborg University
  • Peter Martinsson
    • Department of EconomicsGöteborg University
Article

DOI: 10.1023/B:RISK.0000016141.88127.7c

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

Abstract

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.

contingent valuationtransportvalue of a statistical lifewillingness to payanchoringbad deaths
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© Kluwer Academic Publishers 2004