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CISDOC database

Document ID (ISN)100574
CIS number 02-1589
ISSN - Serial title 0022-4375 - Journal of Safety Research
Year 2002
Convention or series no.
Author(s) Farrow S., Hayakawa H.
Title Investing in safety - An analytical precautionary principle
Bibliographic information Summer 2002, Vol.33, No.2, p.165-174. 29 ref.
Abstract Governments and businesses must respond to increasing safety requirements and balance the associated costs with productivity and competing pressures. A real options approach has been introduced for decision making in the private sector; this approach is adapted for regulatory decisions that can involve irreversible and uncertain safety impacts, social costs that differ from direct costs, and differences in perception among the stakeholders. The outcome is an economic decision gage that determines if it is optimal to invest in safety even if the estimated costs significantly exceed the estimated benefits. Potential applications include civil aviation, ground transportation, pipelines, nuclear facilities, natural disaster planning and terrorism.
Descriptors (primary) hazard evaluation; cost-benefit analysis; plant safety organization; major hazards
Descriptors (secondary) transport by pipeline; economic aspects; emergency organization; nuclear power stations; violence; road transport; air transport; disasters; rail transport
Document type D - Periodical articles
Country / State or ProvinceUSA
Subject(s)
Broad subject area(s) General safety, health and conditions of work
Browse category(ies) Economic aspects
Major hazards
Violence and terrorism
Risk evaluation