Estimation of External Cost and Security Governance on Traffic Accidents

Abstract

This paper focuses on the issues about road traffic accident losses' estimation and security governance, which is paid close attention to in theoretical research and practical application analysis. Firstly, from the external economics view dividing into road traffic accident losses, the external cost was defined as the difference between total social cost and private cost, which were caused by road traffic accidents. Secondly, estimation models were presented about road traffic accident external cost, which included not only total social cost calculation method but also private cost one. Finally, based on existing statistics of China, both road traffic accident losses and external cost were calculated and analyzed in China since 2008, and a series of measures were put forward about strengthening the road traffic security governance. Overall, the research results can provide a reference for the theory research on externality, external cost estimation and the safety management about road traffic accidents.