The value of statistical life in air and road transport

Abstract

Purpose

Accidents occur in all transport modes and can cause significant material damage and loss of life. To efficiently allocate resources that enable the reduction of accidents, it is necessary to estimate the value of a statistical life (VSL). This study aims to show how the statistical value of human life in air and road traffic is determined.

Design/methodology/approach

This study examines and applies recent empirical evidence aimed at clarifying the basic concept of the VSL and defining the reasons for its importance in evaluating public policies in aviation safety and road traffic safety. The research focuses on the principal equity indicators, both theoretical and empirical, that must be confronted to provide a credible estimate of the VSL.

Findings

Previous research shows that the VSL could have a considerable range of possible values. This study emphasizes that risk reduction funds need to be distributed in a consistent and equitable manner to achieve the best outcomes for society as a whole.

Practical implications

This research will guide future research efforts towards understanding the impact of the estimated statistical life value on air and road safety implications.

Social implications

This study strengthens awareness of the importance of the VSL in evaluating public policies in the field of aviation and road safety.

Originality/value

To the best of the authors’ knowledge, this study is one of the first to compare air and road traffic from the perspective of the VSL evaluation.

Citation

Milovanović, M., Čokorilo, O., Ivković, I., Stojiljković, B. and Vasov, L. (2024), "The value of statistical life in air and road transport", Aircraft Engineering and Aerospace Technology, Vol. 96 No. 10, pp. 1287-1294. https://doi.org/10.1108/AEAT-01-2024-0019