The value of mortality risk reductions in Delhi, India

• DOI: 10.1007/s11166-006-9002-5
• Publication Date: 2007-01-09T16:44:20Z
• Authors: Soma Bhattacharya; Anna Alberini; Maureen L. Cropper
• Keywords: 0502 economics and business; 05 social sciences; 11. Sustainability; Transport Economics Policy&Planning,Roads&Highways,Airports and Air Services,Road Safety,Insurance&Risk Mitigation; Health and Safety

We interviewed commuters in Delhi, India, to estimate their willingness to pay (WTP) to reduce their risk of dying in road traffic accidents in three scenarios that mirror the circumstances under which traffic fatalities occur in Delhi. The WTP responses are internally valid: WTP increases with the size of the risk reduction, income, and exposure to road traffic risks, as measured by length of commute and whether the respondent drives a motorcycle. As a result, the value of a statistical life (VSL) varies across groups of beneficiaries. For the most highly-exposed individuals the VSL is about 150,000 Purchasing Power Parity (PPP) dollars.