Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87318
Authors: 
Bockarjova, Marija
Rietveld, Piet
Verhoef, Erik T.
Year of Publication: 
2012
Series/Report no.: 
Tinbergen Institute Discussion Paper 12-047/3
Abstract: 
This paper enriches existing valuation literature in a number of ways by presenting context-specific estimates of immaterial damage. First, it offers an estimation of value of statistical life (VOSL) in the context of a natural hazard (flooding). Next, as one of the contributions, alongside with less biased estimate of VOSL (euro 6.8 mln) it also provides estimates of the value of statistical injury (VOSI, euro 92,000), and of the value of statistical evacuation (VOSE, euro 2,400). Our estimated indicators are plausible and stay robust throughout various estimations. For flood protection policy in the Netherlands, a higher value of VOSL forthcoming from this research would imply 'underprotection' under current conditions. Another important finding concerns the composition of the total value of immaterial damages, where value of fatalities or value of evacuation may dominate depending on the prevailing floor risk circumstances. This implies that, first, VOSL is not an adequate proxy for immaterial damages since it understates prospective benefits of designated protective measures. Second, spatially differentiated composition of immaterial damages should be explicitly considered to guide policy decisions.
Subjects: 
cost-benefit analysis
natural hazard
flood risk
stated preferences
choice experiment
JEL: 
C01
C33
C83
C90
D12
D61
Q51
Q54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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