How Much Would You Pay to Live One Year Longer?

The very title of this article is an attempt to recognise the problem: we talk about the value of a statistical life. We also rehearse problems from time to time in order to get ready for tough choices.

There are hypothetical examples such as the example of a runaway tram (or trolley problem, as it is known in popular media). The trolley problem is a thought experiment in ethics. The general form of the problem is this: Ahead, on the tracks, there are five people tied up and unable to move. The trolley is headed straight for them. You are standing some distance off in the train yard, next to a lever. If you pull this lever, the trolley will switch to a different set of tracks. However, you notice that there is one person on the side track.

You have two options:
1. Do nothing, and the trolley kills the five people on the main track.
2. Pull the lever, diverting the trolley onto the side track where it will kill one person. Which is the correct choice?  The ensuing discussions are an interesting exploration of ethics.

Apart from discussions of ethics exploring the Value of a Statistical Life is useful. There are obviously issues of compensation when a person has been killed. In this article at thewireless.co.nz discusses the introduction of the concept of the Value of a Statistical Life in New Zealand. Far from devaluing human life the attempt to quantify the value and include it in project assessment has meant that lots more safety-based initiatives were funded. Much of the drop in the road toll is credited to the adoption of this approach.