Estimating the value of risk reduction for car occupants

Abstract

Purpose: The paper tries to estimate the willingness to pay the value of statistical life of drivers in Tabriz highways. Design/Methodology/Approach: Data were obtained using a questionnaire whish was distributed among people who travel daily on Tabriz highways to study or work in 2017. Stated choice technique and the mixed logit model are used to estimate the individual's preferences to reduce the risk of fatality and injury. Findings: The results indicated the effects of cost, trip time, number of fatalities and injuries, number of speed cameras and speed limits on choosing a driving route. In addition, investigation of interactive effects of demographic variables and indices shows that only the interactive effects of age, income with indices are statistically significant. Practical Implications: Some policy implications to increase investment on highways and financimg road projects by road users including drivers. Originality/Value: Goverment strategy on highways development is to eliminate or reduce the number of fatalities and injuries.