Keith Vodden Dr. Douglas Smith - Transports Canada

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