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An economic analysis of transport safety: theory and applications

Research project CP/38 (Research action CP)

Persons :

Description :

Context

The project is a logical continuation of the project ‘External cost of transport’, that was conducted as part of the program sustainable mobility (MB/DD/008). Although there are points of agreement between the two projects, their focus is different. In the first project, marginal external accident costs were calculated taking government policy as given. In this project we look for the policy that minimises the accident costs.


Project description

Objectives

Traffic accidents are an important source of social costs. In Belgium more and more people are convinced that actions should be taken to reduce traffic accidents and their costs. Policy makers can do this by using different instruments: traffic regulation and its enforcement, liability rules, economic instruments, infrastructure measures, public and safety education. All these instruments are aimed at influencing driver behaviour.
The project analyses the potential and the restrictions of the first three types of instruments and aims at characterising the conditions for an optimal combination of such instruments. The analysis uses an innovative interdisciplinary approach, it aims to integrate law and economics.
The aim of the project is to propose concrete policy measures for promoting traffic safety in Belgium on the basis of sound theoretical and empirical research.


Methodology

The project proceeds in three steps:

The first step consists of making an overview of existing and potential measures that policy makers can use and of selecting some specific measures, which will be studied further.

The second step approaches the problem from a theoretical angle. This step of the analysis finds its theoretical underpinning both in transport economic models and in law and economic models. We aim at an integration and further development of these two approaches in a partial equilibrium framework. This means that we only look at the effects on the transport market. We consider the following issues:

- How should we judge the traffic safety policy?
- Which elements play an important role in the evaluation?
- What is the social optimum?
- What are the social costs and benefits of specific instruments?
- What are the implications if instruments cannot be optimally applied?
- Which information is needed to make a good evaluation?

The third step applies the theoretical insights to Belgium. The welfare impacts of a number of specific policy packages are calculated. These packages consist of different combinations of regulation, liability rules and economic instruments. A cost-benefit analysis of the measurements is conducted. To this end we can use different approaches. A first approach consists of building examples based on the theoretical models using real world data. A second approach consists of the integration of the theoretical insights of the second step into an existing transport model, such as the TRENEN-model . This is a partial equilibrium model for multiple transport markets, which also allows the incorporation of a number of general equilibrium aspects. This model can be adjusted and extended to give a better idea of accident cost and their determinants and to simulate the welfare effects of different safety measures. The use of this transport model also allows the analysis of the interactions between traffic safety and other external cost of transport, such as congestion. The selection of the best approach will depend on the cost and the benefit of each approach and the measurements. Examples of questions, which will be answered in this step, are:

- What are the social costs and benefits of specific measures and of combinations of measurements?
- Which groups in society benefit of these measures and who is worse off?
- Which measures or combinations of measures are to be preferred from a social point of view? What is the cost for the society of implementing other measures?
- Is it social beneficial to raise the budget for traffic safety?
- What are the limits and uncertainties of the evaluation methods?


Interaction between the different partners

Both teams in the project contribute to all tasks.


Expected results and/or Products

- Research reports, discussion papers, publications in scientific journals.
- Presentation of the results on seminars and conferences.
- Participation in valorisation initiatives of the OSTC.
- Website of the project.
- Interaction with members of the users committee.
- Short discussion notes.


Partners

Activities

The Centre for Economic Studies (C.E.S.-KULeuven) is the research division of the Department of Economic of the Catholic University of Leuven. One division focuses on Transport, Energy and Environmental problems. This division is specialised in the use of modelling tools (general equilibrium, partial equilibrium) to address pricing and investment problems in the transport, energy and environmental fields.
The Centre for Advanced Studies in Law and Economics (CASLE) is a research division of the Faculty of Law of the University of Gent that combines the research of law and economics within the department of Legal Theory and Legal History. CASLE is specialised in applying the insights of the literature on law and economics to Belgian law and Belgian Policy.


Contact Information

Prof. Dr. Stef Proost
KULeuven - Centrum voor Economische Studiën
Naamsestraat 69, B-3000 Leuven
Tel: +32 (0)16 32 68 01; Fax: +32 (0)16 32 69 10
Stef.Proost@econ.kuleuven.ac.be
http://www.kuleuven.ac.be/ete

Prof. Dr. Gerrit De Geest
Universiteit Gent
Department Legal Theory and Legal History
Centre for Advanced Studies in Law and Economics.
Universiteitsstraat 4, B-9000 Gent
Tel: +32 (0)9 264 68 09; Fax: +32 (0)9 264 69 83
gerrit.degeest@rug.ac.be
http://www.law.rug.ac.be/grond/CASLE.html


Users Committee

- Didier Antoine - Ministère de l'Equipement et des Transports de la Région Wallonne - Direction du Trafic et de la Sécurité routière - Namur
- Marc Broeckaert - SPF Mobilité et Transports - DG Mobilité et sécurité routière - Bruxelles
- G. Dari Mattiacci - Universiteit Gent (UGent) - Centre for Advanced Studies in Law & Economics (CASTLE) - Gent
- Gerrit De Geest - Universiteit Gent (UGent) - Centre for Advanced Studies in Law & Economics (CASTLE) - Gent
- Eef Delhaye - Katholieke Universiteit Leuven (KULeuven) - Departement Economie - Centrum voor Economische Studiën (CES) - Leuven
- Marilys Drevet - Belgisch Instituut voor de Verkeersveiligheid vzw (BIVV) - Brussel
- S. Ferard - Ministère de l'Equipement et des Transports de la Région Wallonne - Namur
- Marleen Govaerts - Ministerie van de Vlaamse Gemeenschap - Departement Leefmilieu en Infrastructuur (LIN) - Mobiliteitscel - Brussel
- Inge Mayeres - Katholieke Universiteit Leuven (KULeuven) - Departement Economie - Centrum voor Economische Studiën (CES) - Leuven
- S. Morelle - SPF Mobilité et Transports - DG Mobilité et sécurité routière - Bruxelles
- R. Peeters - Ministerie van de Vlaamse Gemeenschap - Afdeling Verkeerskunde - Brussel
- Stef Proost - Katholieke Universiteit Leuven (KULeuven) - Departement Economie - Centrum voor Economische Studiën (CES) - Leuven
- Catharina Sikow-Magny - European Commission - DG for Energy and Transport - Brussel
- Ives Verbaeys - Beroepsvereniging van de Verzekeringsondernemingen (BVVO) - Brussel

Documentation :

Economic analysis of transport safety: theory and applications : final report  Proost, Stef - De Geest, Gerrit  Brussels : Belgian Science Policy, 2006 (SP1599)
[To download

Analyse économique de la sécurité routière: théorie et applications : résumé    Bruxelles : Politique scientifique fédérale, 2007 (SP1710)
[To download

Economische analyse van verkeersveiligheid: theorie en toepassingen : samenvatting    Brussel : Federaal Wetenschapsbeleid, 2007 (SP1711)
[To download

Economic analysis of transport safety: theory and applications : summary    Brussels : Belgian Science Policy, 2007 (SP1712)
[To download