COSTS, BENEFITS, EFFECTIVENESS AND SAFETY: SETTING THE RECORD STRAINGHT
The concepts of "cost-benefit" and "cost-effectiveness" are increasingly cropping up in debate over present and future motor vehicle standards. Often they are introduced to attack, or justify, a particular standard. Just as often, they are misunderstood and misused. Since a motor vehicle safety performance standard has no costs per se, it cannot be evaluated either in cost-benefit or cost-effectiveness terms. It is the particular design alternatives available to manufacturers to achieve the objectives of a standard that have societal costs. The various design alternatives can be evaluated. Cost-effective designs should be chosen to minimize societal costs, and until there is evidence that cost-effective designs have been chosen, cost-benefit studies are premature. Even then, because of the major conceptual and methodological difficulties in the valuation of life and limb, cost-benefit studies will be appropriate only in the evaluation of designs not primarily intended to save lives and reduce injuries -- that is, vehicle designs to reduce property damage. Until manufacturers are forthcoming with accurate cost data, neither cost-effectivenss nor cost-benefit studies in this field can be relied upon. Pending legislation may resolve this.
- This report from the Automobile Engineering Meeting in Toronto, Canada from October 21-25, 1974.
Warrendale, PA United States 15096
- O'Neill, B
- Kelley, A B
- Publication Date: 1974-10
- Features: References;
- Pagination: 13 p.
- TRT Terms: Benefit cost analysis; Cost effectiveness; Loss and damage; Property; Safety; Vehicle design; Vehicle safety
- Uncontrolled Terms: Property damage
- Old TRIS Terms: Vehicular safety
- Subject Areas: Design; Highways; Safety and Human Factors;
- Accession Number: 00265316
- Record Type: Publication
- Report/Paper Numbers: SAE #740988
- Files: TRIS
- Created Date: Feb 11 1975 12:00AM