Using value of statistical life for the ex ante evaluation of transport policy options: a discussion based on ethical theory

This paper aims to discuss a number of questions that are highly important for the ex ante evaluation of the safety impacts of transport policy options, from the perspective of ethical theory: (1) Is it morally OK to express prevention on acceptance of fatalities or risks in monetary terms? (2) How useful is the concept of the value of a statistical life (VOSL) for ex ante evaluations of transport policy options? (3) What are the pros and cons of pricing protection of lives or prevention of risks in ex ante evaluations? (4) Which methods are available for expressing (protection of) human lives in monetary terms, and what are the main related methodological discussions? (5) Are all safety-related costs generally included in ex ante evaluations of the safety impacts of transport policy options, and if not: what is the relevance of excluded costs categories from an ethical perspective? (6) How important is the distribution of safety effects from an ethical perspective? The answer to the first question highly depends on the ethical theory that is used. With respect to question 2 we think that the VOSL is a useful concept, but that its application is not straightforward, for several reasons. Thirdly we think that probably pricing safety improves the quality of decision making, but to the best of our knowledge there is no research to underpin this expectation. The answer to question 4 is that several methods exist to estimate the value of a statistical life (VOSL), willingness-to-pay (WTP) methods being the most common category of methods. However, several methodological issues arise that make estimates of VOSL less straightforward. With respect to question 5 we conclude that behaviour-related avoidance costs are often overlooked and that these costs are relevant from an ethical perspective because the freedom to move and the freedom to participate in activities are challenged. Finally the answer to question 6 is that from an ethical perspective, in terms of the evaluation of policy measures, it might matter which groups of the population are the victims of the transport system, or are at risk. Egalitarian theories as well as sufficientarianism are useful theories to discuss distribution effects. Different theories conclude differently. © 2012 The Author(s)

Public Preferences for Forest Ecosystem Management in Japan with Emphasis on Species Diversity

We carried out online choice experiments (CE) to investigate what value Japanese individuals assign to rare versus familiar species in forest ecosystem, and to determine how preference heterogeneity arises. CE attributes comprised a forestry charge as the price attribute and rare versus familiar species of animals or plants as the good to be valued. Species numbers in a 5 km-mesh forest area were evaluated without the use of species names to focus purely on responses to numerical changes. Positional effects were also tested to validate results regarding alternatives and attributes other than the price attribute. A random parameter logit model was adopted to capture preferences for species diversity. After confirming that no positional effects existed, we found that (1) rare animals were valued more highly than rare plants, (2) familiar plants were assigned a positive value, but familiar animals were not assigned significant value at the mean parameter estimate, and (3) preference heterogeneities existed for all species. The sources of preference heterogeneity were analyzed with a latent class model having principal components of environmental attitudes. The influence of such attitudes was shown to be significant and suggested that attention should be paid to belief systems rather than solely demographics

'No-choice' options within a nested logit model: one model is insufficient

We examine the impact of providing a 'no-choice' option in attribute-based valuation experiments. The aim of the experiment was to assess monetary values of cockle fishery management practices in the Dutch Wadden Sea for different stakeholder groups, namely Dutch citizens, local residents and tourists. The current policy debate about the management of the Wadden Sea stresses the fact that individual preferences with respect to cockle-fishery differ. The aim of this article is to analyse the individual preferences in a objective way. Special attention is given to the influence of including a 'no-choice option', which is analysed using a nested logit model. We test whether the full set of options can be considered as close substitutes. The estimation results show that the influence of including the no-choice option differs among the stakeholders considered.

Dutch Cycling: Quantifying the Health and Related Economic Benefits

The Netherlands is well known for their high bicycle use. We used the Health Economic Assessment Tool and life table calculations to quantify the population-level health benefits from Dutch cycling levels. Cycling prevents about 6500 deaths each year, and Dutch people have half-a-year-longer life expectancy because of cycling. These health benefits correspond to more than 3% of the Dutch gross domestic product. Our study confirmed that investments in bicycle-promoting policies (e.g., improved bicycle infrastructure and facilities) will likely yield a high cost–benefit ratio in the long term