Journal of Risk and Uncertainty

, Volume 17, Issue 3, pp 187–214 | Cite as

On the Contingent Valuation of Safety and the Safety of Contingent Valuation: Part 2 - The CV/SG "Chained" Approach

  • TREVOR CARTHY
  • SUSAN CHILTON
  • JUDITH COVEY
  • LORRAINE HOPKINS
  • MICHAEL JONES-LEE
  • GRAHAM LOOMES
  • NICK PIDGEON
  • ANNE SPENCER

Abstract

This article reports the results of a study aimed at estimating a willingness-to-pay based value of statistical life for road risks using a multi-stage approach which involves "chaining together" responses to contingent valuation and standard gamble questions.

The rationale for employing a multi-stage approach is to break the wealth/risk of death trade-off down into a number of conceptually manageable steps, thereby trying to attenuate the various biases that appear to be pervasive in responses to more direct contingent valuation questions in the health and safety field.

Safety contingent valuation standard gambles embedding scope sequencing 

References

  1. Beattie, J., Covey, J., Dolan, P., Hopkins, L., Jones-Lee, M., Loomes, G., Pidgeon, N., Robinson, A., and Spencer, A. (1998). “On the Contingent Valuation of Safety and the Safety of Contingent Valuation: Part 1-Caveat Investigator,” Journal of Risk and Uncertainty 17, 5-25.CrossRefGoogle Scholar
  2. Beattie, J., Chilton, S., Cookson, R., Covey, J., Hopkins, L., Jones-Lee, M.W., Loomes, G., Pidgeon, N., Robinson, A. and Spencer, A. (1998). Valuing Health and Safety Controls: A Literature Review, London, Health and Safety Executive.Google Scholar
  3. Blomquist, G. (1979). “Value of Life Saving: Implications of Consumption Activity,” Journal of Political Economy 87, 540-548.CrossRefGoogle Scholar
  4. Dolan, P., Jones-Lee, M.W. and Loomes, G. (1995). “Risk-Risk Versus Standard Gamble Procedures for Measuring Health State Utilities,” Applied Economics 27, 1103-1111.Google Scholar
  5. Dubourg, W.R., Jones-Lee, M.W. and Loomes, G. (1997). “Imprecise Preferences and Survey Design in Contingent Valuation,” Economica 64, 681-702.CrossRefGoogle Scholar
  6. Dreyfus, M.K., and Viscusi, W.K. (1995). “Rates of Time Preference and Consumer Valuations of Automobile Safety and Fuel Efficienty,” Journal of Law and Economics 38, 79-105.Google Scholar
  7. Evans, W.N., and Viscusi, W.K. (1991). “Estimation of State-Dependent Utility Functions Using Survey Data,” Review of Economics and Statistics 73, 94-104.Google Scholar
  8. Highways Economics Note No 1. (1998). London, Department of the Environment, Transport and the Regions.Google Scholar
  9. Jones-Lee, M.W. (1989). The Economics of Safety and Physical Risk, Oxford, Basil Blackwell.Google Scholar
  10. Jones-Lee, M.W., Hammerton, M. and Philips, P.R. (1985). “The Value of Safety: Results of a National Sample Survey,” Economic Journal 95, 49-72.Google Scholar
  11. Jones-Lee, M.W., Loomes, G., and Philips, P.R. (1995). “Valuing the Prevention of Non-Fatal Road Injuries: Contingent Valuation vs Standard Gambles,” Oxford Economic Papers 47, 676-695.Google Scholar
  12. Lanoie, P., Pedro, C., and Latour, R. (1995). “The Value of Statistical Life: A Comparison of Two Approaches,” Journal of Risk and Uncertainty 10, 235-257.Google Scholar
  13. Miller, T., and Guria, J. (1991). The Value of Statistical Life in New Zealand: Market Research on Road Safety, Wellington, Land Transport Division, Ministry of Transport.Google Scholar
  14. O'Brien, B. (1986). “What Are My Chances Doctor?” A Review of Clinical Risks, London, Office of Health Economics.Google Scholar
  15. Schwab Christe, N.G., and Soguel, N.L. (1995). Contingent Valuation, Transport Safety and the Value of Life, Norwell, Kluwer.Google Scholar
  16. Shepard, D.G., and Zeckhauser, R.J. (1982). “Life-Cycle Consumption and Willingness to Pay for Increased Survival,” in Jones-Lee, M.W. (ed) The Value of Life and Safety: Proceedings of a Conference Held by the 'Geneva Association', Amsterdam, North Holland.Google Scholar
  17. Sloan, F.A., Viscusi, W.K., Chesson, H.W., Conover, C.J., and Whetten-Goldstein, K. (1998). “Alternative Approaches to Valuing Intangible Health Losses: The Evidence for Multiple Sclerosis,” Journal of Health Economics 17, 475-497.CrossRefGoogle Scholar
  18. Viscusi, W.K., and Evans, W.N. (1990). “Utility Functions that Depend on Health Status: Estimates and Economic Implications,” American Economic Review 80, 353-374.Google Scholar
  19. Viscusi, W.K., Magat, W.A. and Huber, J. (1991). “Pricing Environmental Health Risks: Survey Assessments of Risk-Risk and Risk-Dollar Trade-offs for Chronic Bronchitis,” Journal of Environmental Economics and Management 21, 32-51.CrossRefGoogle Scholar
  20. Viscusi, W.K. (1993). “The Value of Risks to Life and Health,” Journal of Economic Literature 31, 1912-1946.Google Scholar

Copyright information

© 1999 Kluwer Academic Publishers 1998

Authors and Affiliations

  • TREVOR CARTHY
    • 1
  • SUSAN CHILTON
    • 1
  • JUDITH COVEY
    • 2
  • LORRAINE HOPKINS
    • 3
  • MICHAEL JONES-LEE
    • 1
  • GRAHAM LOOMES
    • 1
  • NICK PIDGEON
    • 3
  • ANNE SPENCER
    • 2
  1. 1.University of Newcastle upon TyneUK
  2. 2.University of YorkUK
  3. 3.University of Wales

Personalised recommendations