Cost Benefit Analysis

Do Speed Cameras Produce Net Benefits? Evidence from British Columbia, Canada

My name and the Citation of the cost benefit analysis

My Name: Sarah Abdulkarim. Title: Do Speed Cameras Produce Net

Benefits? Evidence from British Columbia, Canada

Source: Journal of Policy Analysis and Management v25, n3 (Summer 2006): 661-78

Document Type: Journal Article Database: Econ-Lit

Introduction:

Worldwide, road traffic injuries are the leading cause of death by injury and the ninth leading cause of all deaths.

Traffic collisions kill about 43,000 Americans a year

Could speed cameras be the solution?

Primary questions need to be addressed

What are the Costs of the speed cameras?

What are the Benefits of the speed cameras?

Do speed cameras produce Net Benefits?

Method used to analyze the questions

The study introduced all the cost and benefits of the speeding cameras on:

- The societal point of view- Sponsoring-agency perspectives:

Insurance Corporation of British Columbia (ICBC)

Data source used in the article

The analysis that is used in this study is based on two years of program data (1996 through 1998)

Total Program Costs

Tables 2 & 3: Both the societal and ICBC perspectives, Photo Radar Program costs were = C$27.3 million.

Cost of travel time = C$372 million per year

Benefit from Reduction in Collisions, Injuries, Deaths, and Property Damage

it was estimated that the program prevented:

- 2,220 fewer injury collisions (14%)- 79 fewer fatal collisions (26%)

Emergency response worth C$0.14 million was avoided by photo radar

In the societal perspective …

lives and injuries were valued using estimated economic values of:

-C$120,000 per injury collision

-C$4.58 million per fatal collision.

From (Table 2), the value of safety benefits = C$514 million

In the ICBC perspective

Estimated average claim costs of:

-C$40,000 for each injury collision

-C$50,000 for each fatal collision

Estimated claim savings (Table 3) of

C$66 million.

Summary of costs and benefits:

Net social benefit = C$115 million The largest single benefit is the value

of injuries, deaths, and property damage prevented =C$514 million/year

Photo Radar Program cost = $C27 million Lost travel time cost = C$372 million/year

Policy implications

Greater use of highway photo radar speed enforcement would be good public policy.

Important elements that are addressed

My name and the citation of the cost benefit analysis

Primary questions addressed in the paper

Method used to analyze the questions Data source used in the article Results focusing on the implication for

the primary questions Policy implications