This paper discusses the Swedish experience of developing a method for economic appraisal of road traffic investments where the prospective safety improvements are given explicit monetary values. The Swedish National Road Administration (NRA) is responsible for road maintenance and road construction and for the execution of cost-effective road-construction projects. In developing a method for investment appraisal, which would withstand an economic-theoretical examination, NRA has consulted economists on several occasions. Several major revisions in NRA's way of valuing safety have resulted. For example, the average cost per fatality increased from SEK 4.2 million (about US$0.5 million) in 1985 to SEK 7.4 million (US$0.9 million) in 1989 and to SEK 14.3 million {US$1.7 million} in 1999. This value is currently under debate in relation to ongoing research in Sweden.
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