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Cost of Aviation Accidents and Incidents | btre report 113who will be affected by certain proposals to express their own view onhow much safety they wish to buy 32 .In practice, a human capital approach may still be more appropriate insome cases, particularly if doubts about the reliability of valuationsthat individuals nominate or reveal in willingness to pay studies cannotbe overcome, or if carrying out willingness to pay studies is constrainedby cost and time considerations.Summary• The estimated total cost of aviation accidents and incidents was $114 millionin 2003/04.• Sensitivity testing revealed that two changes in methodology cancelled eachother out. These involved changing the discount rate from 4 per cent to 3per cent and changing future wages growth from 2 per cent to 1 per cent.• Tests also showed that the methodology is particularly sensitive to theestimates of income and age of those involved.28• In principle, willingness to pay studies of Australians should be used todetermine the value of specific safety improvements in Australia. However,for a range of reasons, this may often not be practical.32 For the importance of context in valuing safety improvements, see Loomes and Jones-Lee(1995).