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An Integrated, Market-Based Approach to Vehicle Safety in Road Transport
Technical Paper
2003-01-0104
ISSN: 0148-7191, e-ISSN: 2688-3627
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English
Abstract
It is proposed to replace or amend the new vehicles approval process with a new, market-based alternative to conventional regulation that introduces market factors as cost differentials based on actual accident losses experienced by cars introduced by a specific company. With this methodology, there will be an additional differentiation of the vehicles that compete in a certain market niche, increasing the company benefits from the best performing cars, in terms of road safety, and imposing a charge for the worst performing cars, that will result in an additional market incentive to build less accident-prone cars.
However, the full benefits of this methodology are not related to a static, one-year picture of the situation, his implementation will add an additional market incentive to increase the safety features on cars in the following years, that will result in a increase of the company income (or decrease in expenditures). The aim is to recognize that vehicle design decisions are a component of accident costs; in this sense, these decisions generate an external costs or benefits to the community.
The final objective of this methodology is to enlist market forces to speed-up the introduction of new safety features in vehicles.
Authors
Citation
Bertin-Jones, M., "An Integrated, Market-Based Approach to Vehicle Safety in Road Transport," SAE Technical Paper 2003-01-0104, 2003, https://doi.org/10.4271/2003-01-0104.Also In
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