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Cost‐Benefit Analysis of Passive Fire Protections in Road LPG Transportation

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  • Nicola Paltrinieri
  • Sarah Bonvicini
  • Gigliola Spadoni
  • Valerio Cozzani

Abstract

The cost‐benefit evaluation of passive fire protection adoption in the road transport of liquefied petroleum gas (LPG) was investigated. In a previous study, mathematical simulations of real scale fire scenarios proved the effectiveness of passive fire protections in preventing the “fired” boiling liquid expanding vapor explosion (BLEVE), thus providing a significant risk reduction. In the present study the economical aspects of the adoption of fire protections are analyzed and an approach to cost‐benefit analysis (CBA) is proposed. The CBA model is based on the comparison of the risk reduction due to fire protections (expressed in monetary terms by the value of a statistical life) and the cost of the application of fire protections to a fleet of tankers. Different types of fire protections were considered, as well as the possibility to apply protections to the entire fleet or only to a part of it. The application of the proposed model to a real‐life case study is presented and discussed. Results demonstrate that the adoption of passive fire protections on road tankers, though not compulsory in Europe, can be economically feasible, thus representing a concrete measure to achieve control of the “major hazard accidents” cited by the European legislation.

Suggested Citation

  • Nicola Paltrinieri & Sarah Bonvicini & Gigliola Spadoni & Valerio Cozzani, 2012. "Cost‐Benefit Analysis of Passive Fire Protections in Road LPG Transportation," Risk Analysis, John Wiley & Sons, vol. 32(2), pages 200-219, February.
    • Handle: RePEc:wly:riskan:v:32:y:2012:i:2:p:200-219
    DOI: 10.1111/j.1539-6924.2011.01654.x
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    References listed on IDEAS

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    1. Henrik Andersson & Nicolas Treich, 2011. "The Value of a Statistical Life," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 17, Edward Elgar Publishing.
    2. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    3. repec:reg:rpubli:282 is not listed on IDEAS
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    Cited by:

    1. A. M. Birk, 2014. "Cost‐Effective Application of Thermal Protection on LPG Road Transport Tanks for Risk Reduction Due to Hot BLEVE Incidents," Risk Analysis, John Wiley & Sons, vol. 34(6), pages 1139-1148, June.
    2. Olga Špačková & Daniel Straub, 2015. "Cost‐Benefit Analysis for Optimization of Risk Protection Under Budget Constraints," Risk Analysis, John Wiley & Sons, vol. 35(5), pages 941-959, May.

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