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A structural model of safety and safety regulation in the truckload trucking industry

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  • Savage, Ian

Abstract

This paper models public policies to improve safety within a structural model of the truckload trucking industry. The policies are designed to ameliorate the market failures associated with the myopic ignoring of crash costs by some trucking firms, and institutional constraints that prevent full internalization of the costs of crashes. The paper compares two alternative public policies: (1) levying post-crash fines and making shippers bear secondary liability for damages incurred in crashes, and (2) imposition of a minimum safety standard, in conjunction with a requirement to hold insurance, and assessing penalties for non-compliance with the standard.

Suggested Citation

  • Savage, Ian, 2011. "A structural model of safety and safety regulation in the truckload trucking industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 249-262, March.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:2:p:249-262
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    Cited by:

    1. Dionne, Georges & Desjardins, Denise & Angers, Jean-François, 2021. "Road safety for fleets of vehicles," Working Papers 21-3, HEC Montreal, Canada Research Chair in Risk Management.
    2. Castillo-Manzano, José I. & Castro-Nuño, Mercedes & Fageda, Xavier, 2016. "Exploring the relationship between truck load capacity and traffic accidents in the European Union," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 88(C), pages 94-109.

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