Transcript Cost Benefit Analysis

Cost Benefit
Analysis
Do Speed Cameras Produce Net
Benefits? Evidence from British
Columbia, Canada
My name and the Citation of
the cost benefit analysis





My Name: Sarah Abdulkarim.
Title: Do Speed Cameras Produce Net
Benefits? Evidence from British Columbia,
Canada
Source: Journal of Policy Analysis and
Management v25, n3 (Summer 2006): 66178
Document Type: Journal Article
Database: Econ-Lit
Introduction:
Worldwide, road traffic injuries are the
leading cause of death by injury and
the ninth leading cause of all deaths.
 Traffic collisions kill about 43,000
Americans a year

Could speed cameras
be the solution?
Primary questions need to
be addressed
What are the Costs of the speed
cameras?
 What are the Benefits of the speed
cameras?
 Do speed cameras produce Net
Benefits?

Method used to analyze
the questions

The study introduced all the cost and
benefits of the speeding cameras on:
-
The societal point of view
Sponsoring-agency perspectives:
Insurance Corporation of British
Columbia (ICBC)
-
Data source used in the
article

The analysis that is used in this study
is based on two years of program data
(1996 through 1998)
Total Program Costs

Tables 2 & 3: Both the societal and
ICBC perspectives, Photo Radar
Program costs were = C$27.3 million.

Cost of travel time = C$372 million per
year
Benefit from Reduction in
Collisions, Injuries, Deaths, and
Property Damage

-

it was estimated that the program
prevented:
2,220 fewer injury collisions (14%)
79 fewer fatal collisions (26%)
Emergency response worth C$0.14
million was avoided by photo radar
In the societal
perspective…
lives and injuries were valued using
estimated economic values of:
-C$120,000 per injury collision
-C$4.58 million per fatal collision.


From (Table 2), the value of safety
benefits = C$514 million
In the ICBC perspective
Estimated average claim costs of:
-C$40,000 for each injury collision
-C$50,000 for each fatal collision


Estimated claim savings (Table 3) of
C$66 million.
Summary of costs and
benefits:
Net social benefit = C$115 million
 The largest single benefit is the value
of injuries, deaths, and property
damage prevented =C$514
million/year



Photo Radar Program cost = $C27 million
Lost travel time cost = C$372 million/year
Policy implications

Greater use of highway photo radar
speed enforcement would be good
public policy.
Important elements that are
addressed






My name and the citation of the cost
benefit analysis
Primary questions addressed in the
paper
Method used to analyze the questions
Data source used in the article
Results focusing on the implication for
the primary questions
Policy implications