Social Valuation of Road Accident Reductions Using Subjective Perceptions

A method to calculate social prices for traffic accident reductions is proposed and applied experimentally. The approach requires the estimation of marginal utilities of attributes to be valued and the calculation of the social utility of money. A stated preference experiment was designed to capture the perception of an objective measure of accidents. Two types of models were estimated: one that includes income explicitly; and an income-stratified model (two groups). Using the obtained parameters, social values for accident reductions were calculated, showing little variation across income groups. Private values were also obtained and compared with those previously reported.