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Confrontation between shareholders and local residents over safety investments in high-risk industries

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  • Nicolas Piluso

    (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - UT3 - Université Toulouse III - Paul Sabatier - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - CNRS - Centre National de la Recherche Scientifique, IUT Toulouse Auch Castres - Institut Universitaire de Technologie - Paul Sabatier - UT3 - Université Toulouse III - Paul Sabatier - Comue de Toulouse - Communauté d'universités et établissements de Toulouse)

Abstract

The aim of this article is to model a negotiation between shareholders in high-technology-risk industries and local residents on the safety investments to be implemented. The methodology used is a Nash bargaining model, with a DE curve representing shareholders' dividend demands and an NS curve representing the safety demands of local residents' associations. The model is used to determine the level of safety investment required. One of the main results is that the estimation of a higher accident risk is accompanied by both a higher safety investment and a higher dividend payout. The most obvious implication of this result is that it is undoubtedly necessary to give greater weight to local residents in investment decision-making, in order to improve the well-being of all stakeholders.

Suggested Citation

  • Nicolas Piluso, 2023. "Confrontation between shareholders and local residents over safety investments in high-risk industries," Post-Print hal-04154392, HAL.
    • Handle: RePEc:hal:journl:hal-04154392
    DOI: 10.58567/eal02030007
    Note: View the original document on HAL open archive server: https://hal.science/hal-04154392v1
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    References listed on IDEAS

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    1. Nicolas PILUSO & Clément RAU, 2016. "Les Investissements De Sécurisation Des Sites Industriels À Risque Et La Concertation Entre Firmes Et Riverains : Une Approche Théorique," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 59-76.
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    4. Miller B. Spangler, 1982. "The Role of Interdisciplinary Analysis in Bridging the Gap Between the Technical and Human Sides of Risk Assessment," Risk Analysis, John Wiley & Sons, vol. 2(2), pages 101-114, June.
    5. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-648, July-Aug..
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