The Social Cost of Road Crashes and Injuries

The Social Cost of Road Crashes and Injuries June 2009 update has been released.

The report finds that the total social cost of motor vehicle injury crashes in 2008 is estimated at approximately $3.7 billion (down from $4 billion in 2007), at June 2009 prices - including both reported and non-reported cases. The reduction can be attributed to a sizeable reduction in the number of road deaths (from 422 in 2007 to 366 in 2008, or a 13 percent decrease) and a smaller reduction (around 5 percent) in the number of serious and minor injuries.

Read an overview of the report here (html)

Download the full June 2009 report here (PDF 7.0, 2.38mb).

Read the questions and answers on the report here.

Download reports from previous years:

• Social Cost of Road Crashes and Injuries June 2006 update (PDF v7.0, 405kb) 
• Social Cost of Road Crashes and Injuries June 2007 update (PDF v7.0, 384kb) 
• The Social Cost of Road Crashes and Injuries June 2008 update (PDF v7.0, 1,499kb)

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About the report

The social costs of a road crash and the associated injuries include a number of different elements:

• Loss of life and life quality
• Loss of output due to temporary incapacitation
• Medical costs
• Legal costs
• Property damage costs

Injury costs are classified into fatal, serious and minor injuries as reported by crash investigators.

The average value of a loss of life is estimated by the amount of money that the members of the New Zealand population would be willing to pay for a safety improvement that results in the expected avoidance of one premature death¹. It is a measure of the pain, suffering and loss of life component of the social cost.

The value of statistical life (VOSL) was established at $2 million in 1991, following a willingness to pay (WTP) survey carried out during 1989/1990. It is indexed to average hourly earnings (ordinary time) to express the value in current prices. The same VOSL has been used in all safety evaluations across all three transport modes (road, maritime and aviation), as decided by the Government in 1991 (NZ Gazette notice 4983).

Medical costs can be further broken down into emergency costs, medical/hospital treatment costs and follow-on costs. Legal costs include crash investigation, imprisonment and court costs.

The social cost of road crashes and injuries is updated annually. Please contact info@transport.govt.nz for copies of earlier reports.

Footnotes

1. This is the willingness to pay based value of statistical life.