Are some lives more valuable? An ethical preferences approach.
We develop a theoretical model of the ethical preferences of individuals, combining individual social welfare functions and random utility theory. The model is applied by conducting a choice experiment regarding safety-enhancing road investments that target different age groups and road user types. The relative value of a saved life is found to decrease with age, such that the present value of a saved life-year is almost independent of age at a pure rate of time preference of a few percent. Moreover, a saved pedestrian is consistently valued higher than a saved car driver of the same age.
Johansson-Stenman
Olof
O
Department of Economics, Göteborg University, Box 640, SE 405 30 Göteborg, Sweden. olof.johansson@economics.gu.se
Martinsson
Peter
P
D000367:Age Factors; D000533:Altruism; D002755:Choice Behavior; D006801:Humans; D008962:Models, Theoretical; D012449:Safety / Q000191:economics; D014186:Transportation / Q000191:economics; D026712:Value of Life