Automatic safety and speed enforcement systems. An economic study

University essay from Högskolan i Jönköping/IHH, Nationalekonomi


There is a debate in Sweden if the Automatic Safety and speed enforcement systems (SSS) in Sweden are profitable or not. Cost benefit analysis (CBA) is an excellent tool for determining the economy of traffic safety measures. The parameters of the CBA in this work include: tire wear, fuel consumption, environmental pollution, saved lives and injuries, reduced material damage, time for disputing tickets, time in traffic lines due to accidents, longer time due to lower speed and collected fines and maintained cost for the SSS. The sensitivity analysis shows that the SSS system appears to be profitable and the greatest uncertainty arises from the calculation of saved lives. Each SSS will on average generate a profit of approximately 250,000 SEK annually.

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