Strengthening incentives for efficient road safety policy priorities: The roles of cost–benefit analysis and road pricing

Abstract

This paper discusses how incentives for setting efficient priorities in road safety policy can be strengthened. Efficient priorities are characterised by the use of cost-effective road safety measures. Cost-effective road safety measures can be identified by means of cost-benefit analyses. Studies of the actual priorities in road safety policy, in particular in the Scandinavian countries, suggest that these priorities are inefficient, i.e. characterised by the non-use or sub-optimal use of cost-effective road safety measures as well as an extensive use of ineffective road safety measures. This occurs despite the fact that road safety policy analyses have included extensive cost-benefit analyses of road safety measures. It would thus appear that cost-benefit analyses do not necessarily generate a sufficient incentive to implement cost-effective road safety measures. Possible reasons for this are discussed in the paper. It is argued that a large part of the monetary benefits of road safety measures, as estimated in cost-benefit analyses, are not subject to market transactions, and do therefore not manifest themselves in the form of increased income or higher profits. While cost-benefit analyses are indispensable as a means of identifying cost-effective road safety measures, their influence on actual road safety policy needs to be strengthened by providing additional incentives for the use of cost-effective road safety measures. It is suggested that a system of road pricing could generate such incentives. A brief sketch of a hypothetical system of road pricing is given and some problems associated with the implementation of this system are discussed.