Stated preference in the valuation of interurban road safety

In Chile, as in most less-developed nations, if life savings are valued at all the human capital approach is used in a rather non-consistent fashion. As part of a 5-year research project on the value of transport externalities, a stated preference (SP) experiment was carried out in order to assess the value of a statistical life for Chilean interurban motorways. Interviewees had to choose among different routes for a hypothetical trip, based on the following attributes: travel time, toll charge and level of risk. The results of our experiment show that people were sensitive to the risk variable, thus "stating" a preference for safer routes. Several models were estimated with linear and non-linear utility specifications, and also incorporating the effects of socio-economic variables in a novel and interesting fashion. We were able to estimate subjective values of time consistent with previous values obtained in the country and reasonably looking values (in comparison to Chilean prices and foreign experience) of a statistical life. The paper discusses the experimental design, data collection and analysis, with emphasis on the role of lexicographic individuals that are a feature of SP studies that has not been carefully explored in the literature. We also present our modelling results and compare our derived values (of time and of a statistical life) with values found previously and/or elsewhere.