Environmental Economics

The Effects of Age and Family Status on the Value of Statistical Life–Evidence from the Automobile Market and a National Survey of Automobile Use, Volume II of Economic Valuation of Mortality Risk Reduction

This study reports on a new national survey of individual automobile usage designed to provide information on automobile safety expenditures by family status and age. Noting that, for a family, the safety of an automobile is a public good, these data, when combined with an analysis of the FARS data set on fatal automobile accidents and a hedonic price function for automobiles, allows estimation of the value of statistical life for individual family members over their lifetime. The research also attempts to resolve the problem of an anomalous sign on the coefficient on fuel consumption in prior hedonic price studies of automobile safety. The principal result is that the value of statistical life remains relatively constant over the lifetime for all family members with the exception of parents with children living in the household, who have a lower value. Adults without children do not show a similar decrease in the value of statistical life. Estimates of income elasticity are also presented and a theoretical explanation for the results is provided.

  • Keywords

    Subject:
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Revealed Preference
    1. Benefits Analysis - Valuation - Revealed Preference - Consumption Choices
    Environmental Media:
    f. Multimedia
    Authors:
    Schulze, William
    Mount, Timothy
    Weng, Welfeng\
    Zhang, Ning
    Chestnut, Laurie
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    United States
    Study Purpose:
    Empirical Application, Methodology Development & Evaluation, Data Development
    Report Series:
    Economic Valuation of Mortality Risk Reduction
    Inventory Record #: EE-0488A
    List of all reports in the Series:
  • Participating Organizations

    Research Organization:

    Cornell UniversityAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Economics, and Innovation, National Center for Environmental EconomicsAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    11/01/2004
    Number of Pages:
    114
    Comment:
    Grant/Contract #:
    CR824393-01
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    Date Linked: 05/28/2009