The Social Cost of Marine Accidents and Marine Traffic Management Systems

Abstract

The benefits to society that would result from the introduction of a given marine traffic management system depend directly on the scale of the system introduced. Since the cost society would be required to pay for a marine traffic management system would also vary directly with its scale, by focusing on the cost of marine accidents both from cargo pollution as well as from loss of life, a direct cost-benefit comparison can be made, indicating the benefit to society attained through a reduction in cargo pollution and loss of life per thousand pounds expenditure on control systems.Such an analysis implies confidence in the ability to assess in monetary terms the effect of pollution on such non-economic entities as the natural ecosystem as well as the value of such supra-economic items as a human life. In presenting our estimates we not only point out their shortcomings but also admit that past research has been unable to place an economic value on some of the dimensions of the environment, and that therefore any estimates for the social cost of pollution and loss of life should be considered a conservative estimate of the true social cost.It is only when we have reliable estimates of the social cost of marine accidents that we can proceed to assess the net benefit of a given marine traffic management system. But then further research must be undertaken on the question of just what is the nature of the relationship of controls and social costs.