- Research Article
29
- 10.2139/ssrn.1832767
Policy Challenges of the Heterogeneity of the Value of Statistical Life
- Jan 01, 2011
- SSRN Electronic Journal
- W Kip Viscusi
Policy Challenges of the Heterogeneity of the Value of Statistical Life
The United States (US) aviation industry provides a potentially useful mental model for dealing with certain cost-benefit decisions in aesthesiology. The Federal Aviation Administration (FAA), the national aviation authority of the United States, quantifies a price for the value of a human life based on the U.S. Department of Transportation's (DOT) value of a statistical life (VSL) unit. The current VSL is around $9.6 million, indexed to grow with consideration given to inflation and wage changes from the 2016 baseline of $9.4 million [1]. To illustrate the concept, if the FAA estimates that 100 people are likely to die in the future given the current practice standards then the monetary cost of this loss will be $940 million. The FAA uses this estimated monetary value as an official reference point in its regulatory decisions, and the agency publishes in detail how it derives the estimated value. When proposing new regulations, the FAA bases its decisions on comparisons of the human life cost associated with the existing regulation versus the alternative cost that the industry stakeholders will incur subsequent to the adoption of the regulation. In this example, if the cost incurred by the industry is more than the $940 million cost then the FAA will not adopt the proposed regulation and hence will not require the industry to undertake this cost.
Policy Challenges of the Heterogeneity of the Value of Statistical Life
Policy Challenges of the Heterogeneity of the Value of Statistical Life
The expanding role of lower fidelity simulation technologies in aviation training
This paper describes the basic approach used by the Federal Aviation Administration (FAA) to classify the various levels of simulation devices used for training and certifying pilots within the airline industry. It also discusses these devices in terms of the differing types of training and evaluation (certification) activities most appropriate to each. Because of the similarities between the aviation and nuclear power industries (government regulation, safety orientation, high-technology operations, team performance, etc.) many of the training and evaluation concepts utilized by the aviation industry should generalize well to the nuclear power industry. This paper also discusses the projects in progress at the FAA to accommodate the use of lower levels of simulation fidelity in training and evaluation applications. It concludes with a discussion of the human factors issues that currently limit more effective utilization of the current inventory of FAA approved devices.
Read moreCommercial Space Transportation Markets, Regulations, Licensing and Permitting Considerations
The U.S. commercial space transportation industry is in its infancy. It has been conducting launches licensed by the U.S. Department of Transportation’s Federal Aviation Administration (FAA) for just 18 years. Presently, there are a number of commercial space markets that space visionaries and entrepreneurs are trying to open up. The FAA is playing a crucial role in the development of these new and exciting markets. Congress has passed legislation directing the Secretary of Transportation, and as delegated to the FAA, to encourage, facilitate, and promote these developments in U.S. commercial space transportation and ensure that public safety is maintained through adequate regulation that, at the same time, is not over burdensome. The FAA is currently exercising its rulemaking authority with proper, cogent input from both the public and the industry to carry out this mandate bestowed by Congress. A new regime, the experimental permit, has been established to complement the licensing process for suborbital space tourism ventures. There are ramifications to these new regulatory developments and considerations that commercial space transportation operators should take into account. Some of the strategies that may be employed when utilizing the new experimental permits to augment and to transition to a licensing format for a developer’s operations are stipulated. Finally, conclusions are drawn as to where these new tools may lead the U.S. commercial space transportation operators in the development of these emerging markets.
Read moreStudy on Motorcycle Crash Cost in Bandung City
Crash cost is an important component for conducting economic analysis in selecting countermeasures for crash locations. It is used to convert the benefit of crash or fatality reduction into monetary terms. Many research on crash cost have been carried out in Indonesia. Most of the research utilized gross output/human capital approach. However, this approach has been widely criticized for not being able to describe the quality of life of crash casualties and the costs of pain, grief and suffering (i.e. human cost). The concept of Value of Statistical Life (VoSL) has been introduced by InDeV (2016) to calculate the human cost, which is assessed by using willingness to pay approach. To obtain a more reliable estimation of crash cost for Indonesia, it is necessary to conduct a study on crash cost involving motorcycles which incorporates the estimation of human cost. The VoSL is obtained by interviewing motorcycle users for willingness to pay with safety equipment. Based on the analysis, it is obtained that the value of statistical life (VoSL) for fatality in a road crash was estimated to be Rp.2.3 billion. The unit cost of fatal injury is Rp.3.08 billion, serious injury is Rp.333 million and slight injury is Rp.24.9 million. The unit cost of fatal crash on arterial roads is Rp.3.23 billion, serious crash is Rp.451 million and the slight crash is Rp.114 million. The unit cost of fatal crash on collector roads is Rp.3.16 billion, serious crashes is Rp.381 million and minor crash is Rp.69.4 million. The unit cost of fatal crash on local roads is Rp.3.09 billion, serious crash is Rp.338 million, and minor crash is Rp.29.8 million. Keywords: Motorcycle crash cost, gross output approach, human capital approach, willingness to pay approach
Read moreRenal artery stenting may not be appropriate for patients with atherosclerotic renal artery stenosis.
This study compared aortorenal bypass to renal artery stenting to determine the most efficacious and financially sound method for treating patients with atherosclerotic renal artery stenosis (RAS). A decision analysis using direct and indirect costs, and value of statistical life (VSL) was completed. Direct costs were obtained using the Nationwide Inpatient Sample (NIS), indirect costs from the National Institute of Diabetes and Digestive and Kidney Diseases, and VSL from the Department of Transportation. A variance-based sensitivity analysis was completed to assess the accuracy of the decision analysis. Aortorenal bypass has a 95% five-year patency, a 98% 30-day survival, a 26% rate of overall complications, and a 70% five-year dialysis-free survival. Renal artery stenting has a 56% five-year patency, a 99% 30-day survival, a 40% rate of complications, and a 65% five-year dialysis-free survival. Renal artery stenting has an overall cost of $305,370 and aortorenal bypass has an overall cost of $103,453 per patient. After accounting for VSL, renal artery stenting has a negative value of -$182,270 and aortorenal bypass has a value of $415,881. Lower five-year patency and higher rate of complications from renal artery stenting that ultimately lead to significantly lower five-year dialysis-free survival.
Read moreThe Role of the Top 50 US Cargo Airports and 25 Air Cargo Airlines in the Logistics of E-Commerce Companies
Background: The purpose of this study is to analyse the role of the main 50 US cargo airports and 25 air cargo airlines in the logistics of e-commerce companies from 2000 to 2020, to highlight the importance of airports in the logistics and e-commerce industries. Methods: A review of the relevant literature on airports, air cargo carriers, logistics, and e-commerce sectors was undertaken to understand the link between them. The data were collected using four criteria: airport category, airport location, top 25 air cargo carriers, and other relevant data from the Federal Aviation Administration, International Air Transport Association, Organization for Economic Co-operation and Development, US Department of Transportation, amongst many others. Results: The findings reveal that there is a consolidated relationship between airports, air cargo airlines, and e-commerce, which has been especially evident during the COVID-19 pandemic. Airports and air cargo carriers are identified as the most relevant partners in the e-commerce industry. This is because of the e-commerce sector and its users’ demand for speed and reliability in the interaction between the demand for and supply of products and services. Conclusions: The pandemic has changed the way in which organizations operate and is likely to create new demand from companies and users in the aviation and e-commerce industries. E-commerce companies are highly dependent on the quality and efficiency of air cargo airlines and airports because they need to provide a good shipping service for their products to customers.
Read moreGlobal Navigation Satellite System (GNSS) and Area Navigation (RNAV) Benefiting General Aviation
The Federal Aviation Administration (FAA) and general aviation (GA) industry are working collaboratively to publish lower minimum en route altitudes (MEAs) for Global Positioning System (GPS)-equipped aircraft operating at low altitudes, and more direct transition routes through Class B airspace based on area navigation (RNAV) (commonly achieved in GA aircraft with GPS). These efforts are intended to improve access to airspace, safety of flight, and seamless RNAV operations in the NAS - in accordance with the FAA's roadmap to performance-based navigation published in July 2003. The roadmap initiatives were developed jointly by FAA and industry under the sponsorship of the Performance-Based Operations Aviation Rulemaking Committee (PARC). The GA representation on that committee was provided by Aircraft Owner's and Pilot's Association (AOPA), who was spearheading the movement toward achieving benefits with GPS and spurring a growth rate in aircraft equipage. This paper presents the concepts of use for lower MEAs based on GPS and RNAV transition routes through Class B airspace. The paper also provides a description of the benefits and an outline of the implementation strategy.
Read moreDepartment of Transportation
The Department of Transportation’s role in Africa is limited to the involvement of the Coast Guard and the Federal Aviation Administration (FAA). The Office of International Transportation Programs currently has no dealings with African nations, although it has had some in the past. The Coast Guard maintains a small station in Liberia which consists of one officer and a team of enlisted men. Three Africans, two from Zaire and one from Liberia, attended the Coast Guard’s Officer Candidate School four-month program in 1976.
Read moreSecuring ADS-B data transmissions using blockchain: a comprehensive survey and analysis
PurposeThe purpose of this paper is to study the various solutions and recommendations provided by researchers in applying the blockchain concept to different problems in aviation industry. It will discuss and highlight the specific approaches that leverages blockchain to mitigate the automatic dependent surveillance-broadcast (ADS-B) security issues. Furthermore, it introduces an innovative design and method to secure ADS-B data using a tamper-resistant distributed public ledger of authenticated flight plans and validates the position and other parameters of the associated aircraft identifier against the flight paths/routes that are stored in the blockchain ledger.Design/methodology/approachADS-B is the key technology that is mandated by Federal Aviation Administration in USA by 2020. However, ADS-B data is neither encrypted nor authenticated. This paper proposes a novel solution using blockchain to secure the ADS-B data communications and in-depth analysis of existing solutions covering the following aspects: classification of various possible attacks on ADS-B. Presents various solutions proposed by different researchers regarding use of blockchain in aviation industry. Discuss a new solution to secure ADS-B using blockchain. Discuss the high-level architectural framework of the proposed and patented solution. Finally, presents the conclusions and future work scope.FindingsWhile the main intention of this paper is to bring together all the existing solutions using blockchain to secure aviation and ADS-B data at one place, the proposed novel solution could contribute to maintaining security and privacy for aircrafts flying in the airspace at any point in time. Continuously securing the ADS-B data transmissions based upon the filed flight plans in real time can provide a mechanism to identify spoofed aircraft messages and communicate the same to ground stations for authentication of existence of such a malicious aircraft. Thus, this solution also differs from all the existing ones.Practical implicationsAs aviation industry is in its infancy stage in implementing blockchain-based solutions, practical implementation of the proposed concept might take longer.Originality/valueThis paper is a comprehensive survey and review paper. To the best of the authors’ knowledge, this is the first of its kind that presents various use cases for usage of blockchain in aviation industry along with a detailed review of existing proposed or implemented solutions using blockchain to secure ADS-B data. This can serve as an invaluable reference for the future researchers on this topic in both industry and academia.
Read moreThe Value of a Statistical Life: A Meta-Analysis with a Mixed Effects Regression Model
The Value of a Statistical Life: A Meta-Analysis with a Mixed Effects Regression Model
Certification Versus Licensing for Human Spaceflight in Commercial Space Transportation
Safety oversight of commercial space transportation by the government can come in two forms: a certification regime or a licensing regime. Certification addresses design characteristics of a vehicle and is common in aviation. It is typically based on decades of extensive flight experience and data. While aviation certification can be expensive, there is a large and mature market to offset initial investment. However, certification may not be the best approach for a new industry such as commercial human spaceflight. Although there is a history of government funded orbital spaceflight, most commercial companies do not have the same resources as government programs. In addition, new suborbital vehicles have less in common with historical government suborbital test aircraft, and to date only a few commercial flights have been carried out. The market for carrying people into space shows great potential but is unproven for both commercial orbital and suborbital vehicles. In 1984, the Department of Transportation (DOT), as the regulator of U.S. commercial space transportation, established a regime to license the safety of launch events instead of certifying launch vehicles. The Federal Aviation Administration's Office of Commercial Space Transportation (AST) has this authority within DOT today. Instead of imposing a prescriptive and limited set of design criteria, AST has performance-based requirements to ensure safe operations. Thus far, results indicate greater innovation by industry at a much lower cost, along with the ability to test designs and methods before entering the market. This article will examine some of the key differences between certification and licensing in commercial space transportation and evaluate the U.S. approach to growing a new industry while maintaining safety. The article may be useful to countries that are considering safety oversight for the development of new spaceports and vehicles.
Read moreOffice of Emergency Transportation: Mission and function
Office of Emergency Transportation: Mission and function
New times at the faa: Since deregulation, the number of pilots, planes, and airlines has overwhelmed the Federal Aviation Administration
The questions of whether the Federal Aviation Administration's (FAA) dual mission of enforcing safety regulations and promoting civil aviation is self-contradictory, and whether the agency could operate more effectively as a government corporation or independent agency, rather than as part of the US Department of Transportation, are considered. Since deregulation, competition has more than doubled the number of commercial carriers, vastly increasing the number of US airplanes, pilots, and mechanics, not to mention takeoffs and landings. It is suggested that the FAA, which has been trying to oversee the increased activity with about the same staff it had in 1978, is too concerned with promoting aviation and is giving too much priority to certification of new airlines and their employees at the expense of checking aircraft maintenance. The possibility of doing away with the FAA's promotional role and giving it more autonomy and clout by making it an independent government body or a federal corporation is explored.
Read moreTerminal Area Forecast 1977-1987. Aviation Forecast Branch, Office of Aviation Policy, Federal Aviation Administration, Department of Transportation, Washington, D.C. 20591. February 1976. Various paging
Terminal Area Forecast 1977-1987. Aviation Forecast Branch, Office of Aviation Policy, Federal Aviation Administration, Department of Transportation, Washington, D.C. 20591. February 1976. Various paging
Read moreTerminal Area Forecasts—Fiscal Years 1987-2000. Federal Aviation Administration, Department of Transportation. Copies may be ordered from the National Technical Information Service, Springfield, Virginia 22151. March 1987. Various paging
Terminal Area Forecasts—Fiscal Years 1987-2000. Federal Aviation Administration, Department of Transportation. Copies may be ordered from the National Technical Information Service, Springfield, Virginia 22151. March 1987. Various paging
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