Keith Vodden Dr. Douglas Smith - Transports Canada

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Social Cost of Motor Vehicle Collisions in Ontario Exhibit IV-2 provides an alternative allocation of costs (for the willingness to pay medium estimate) across the major consequence of collision. In the exhibit, costs directly related to human consequences (value of life and injury avoided, hospital and health care and ambulance costs) and all other costs (allocated based on the number of fatalities; major, minor and minimal injuries, and PDOs) are identified. Exhibit IV-2 Allocation of costs by major collision consequence—total (2004 million $) and average (2004 thousand $) for Willingness to Pay Medium Estimate (WTP-M) Human Consequences Fatalities Major Minor Minimal PDO Human consequences 11056.8 1373.8 2132.0 352.9 14915.6 Hospital/Health Care - ER facility 0.0 0.4 6.3 0.0 6.8 - Hospital stay facility 0.5 11.7 12.1 - Medical practitioners 1.0 24.3 55.8 22.9 104.0 Ambulance 0.6 5.9 22.6 29.1 Total directly attributable to individuals 11058.9 1416.2 2216.6 375.8 15067.6 All other attibutable costs 9.4 60.9 701.1 679.2 1346.4 2797.1 Total ($ million) 11068.3 1477.1 2917.8 1055.0 1346.4 17864.6 Average ($ thousand)* 13614.2 279.8 48.0 17.9 8.0 77.2 * Average per fatal, injury by severity, PDO and collision respectively Total Using the willingness to pay medium scenario, average costs (including direct and other allocated costs) per fatality are $13.6 million and per major, minor, and minimal injury are $280 thousand, $48 thousand, and $18 thousand respectively. Average costs per PDO are $8 thousand. The average cost of a collision in Ontario in 2004 is $77 thousand. C. SOCIAL COSTS BASED ON ALTERNATE VALUES FOR HUMAN CONSEQUENCES The model allows flexibility in terms of the selection of the method used to value human consequences. Exhibit IV-3 shows the result of alternative valuation methods for human consequences. Using the discounted future earnings approach the value placed on human consequences is $1.5 billion. A willingness to pay approach to valuing human consequences would produce a range from $7.4 billion to $22.4 billion. Based on these alternative valuation methods for human consequences the social costs of motor vehicle collisions in Ontario for 2004 are $4.2 billion using a DFE approach and from $10.0 billion to $25.1 billion using a WTP approach. TNS Canadian Facts, Social and Policy Research 49
Analysis and Estimation of the Social Cost of Motor Vehicle Collisions in Ontario Exhibit IV-3 Values for Human Consequences based on alternative valuation methods (2004 million $) Discounted Future Earnings Collision Severity Fatal Injury PDO TOTAL Fatalities 894.3 894.3 Injuries: Major 2.4 38.2 40.7 Minor 1.8 67.2 69.0 Minimal 0.0 2.1 2.1 Total disability 7.0 146.5 153.6 Partial disability 13.4 332.1 345.6 HUMAN SUB-TOTAL 919.0 586.2 1,505.2 Low estimate using Willingness to Pay Collision Severity Fatal Injury PDO TOTAL Fatalities 6,097.5 6,097.5 Injuries: Major 13.7 213.8 227.5 Minor 13.6 512.0 525.6 Minimal 0.4 26.7 27.2 Total disability 3.1 64.0 67.1 Partial disability 17.1 422.2 439.3 HUMAN SUB-TOTAL 6,145.4 1,238.8 7,384.2 High estimate using Willingness to Pay Collision Severity Fatal Injury PDO TOTAL Fatalities 16,016.1 16,016.1 Injuries: Major 68.4 1,069.2 1,137.6 Minor 68.1 2,559.8 2,627.9 Minimal 2.2 133.5 135.8 Total disability 15.3 320.2 335.6 Partial disability 85.5 2,111.3 2,196.7 HUMAN SUB-TOTAL 16,255.7 6,194.0 22,449.6 50 TNS Canadian Facts, Social and Policy Research
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TP 14800F Analysis and Estimation o
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APPENDIX A: DETAIL ON CALCULATIONS
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• Large truck. Collisions involvi
Page 8: ABBREVIATIONS CAC Criteria Air Cont
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Appendix B—Making Changes to the
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APPENDIX D: VALUE OF HUMAN CONSEQUE
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APPENDIX E: REFERENCES Audrey, J. a
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Keith Vodden Dr. Douglas Smith - Transports Canada

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