Assessing environmental goods and external costs: Road Safety

This lecture discusses the assessment of environmental goods and external costs, focusing on road safety. The instructor presents a case study of a dangerous road intersection in Switzerland, analyzing the value of statistical life based on different investment scenarios to improve safety measures. The lecture also explores the concept of trade-offs in decision-making, using examples such as building protective dams to prevent flood damage and the willingness of a municipality to invest in marshland to mitigate flooding risks.