Abstract
This paper adopts the accident incidence, the gross industry output value, the investment in safety facilities, and per capita wage of employment as the indexes to empirically analyze the investment performance of chemical safety facilities using time series data by VECM in China. The empirical results indicate that for China’s chemical industry, increasing investment fails to improve the short-term safety level significantly because of the offsetting behavior of workers. Over the long term, the offsetting behavior tends to disappear, and the chemical accident incidence can be decreased through increasing investment. Poor safety awareness among workers is one of the causes of accident incidences. The conclusions provide theoretical support for China to perfect chemical industry safety management.
Highlights
With the birth of chemical industry, controversy arose because of the industry’s high risk to human safety and to the environment
We begin our empirical analysis by testing for unit roots in the accident incidence St, gross industry output value Vt, investment in safety facilities It, and per capita wage Wt, because the integrational properties are crucial for the cointegration test and Granger causality test in VECM framework
When we convert the accident incidence St, gross industry output value Vt, investment in safety facilities It, and per capita wage Wt series into first difference and subject the series to the ADF test, the calculated t-statistic for all accident incidence St, gross industry output value Vt, investment in safety facilities It, and per capita wage Wt is smaller than the critical value at the 5% level
Summary
With the birth of chemical industry, controversy arose because of the industry’s high risk to human safety and to the environment. The safety, health, and environmental problems caused by hazardous chemical accidents are increasing. China has recently enacted more than 200 laws, administrative regulations, and departmental rules for its chemical industry. This intensification of management is unprecedented, but it still cannot stop the rise of chemical accidents year by year [1]. It is necessary to analyze the safety management effect empirically for China’s chemical industry. The literature in relation to the cause of chemical accidents which happened frequently is relatively lacking, especially empirical analysis in China. An empirical test on the investment performance of chemical safety facilities will be implemented to talk about the cause of the chemical accidents happening frequently through analyzing the dynamic relationship between the investment and the performance of chemical safety facilities, using the time series data by VECM (Vector Error Correction Model)
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