IDEAS home Printed from https://ideas.repec.org/a/wly/riskan/v32y2012i2p200-219.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1539-6924.2011.01654.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1539-6924.2011.01654.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henrik Andersson & James Hammitt & Gunnar Lindberg & Kristian Sundström, 2013. "Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(3), pages 437-456, November.
    2. Treich, Nicolas, 2010. "The value of a statistical life under ambiguity aversion," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 15-26, January.
    3. Treich, Nicolas & Yang, Yuting, 2021. "Public safety under imperfect taxation," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    4. Zheng, Jiakun, 2021. "Willingness to pay for reductions in health risks under anticipated regret," Journal of Health Economics, Elsevier, vol. 78(C).
    5. Andersson, Henrik & Hole, Arne Risa & Svensson, Mikael, 2016. "Valuation of small and multiple health risks: A critical analysis of SP data applied to food and water safety," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 41-53.
    6. Henrik Andersson & James K. Hammitt & Kristian Sundström, 2015. "Willingness to Pay and QALYs: What Can We Learn about Valuing Foodborne Risk?," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 727-752, September.
    7. Shah Rome Khan & Muhammad Imran Khan & Dr. Sardar Javaid Iqbal Khan, 2023. "An Investigation into the Statistical Significance of Labor Force Longevity in Brick Kilns and Marble Industry: A Case Study of Peshawar," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 679-688.
    8. Henrik Andersson, 2008. "Willingness to Pay for Car Safety: Evidence from Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(4), pages 579-594, December.
    9. Andersson, Henrik, 2013. "Consistency in preferences for road safety: An analysis of precautionary and stated behavior," Research in Transportation Economics, Elsevier, vol. 43(1), pages 41-49.
    10. Jaithri Ananthapavan & Marj Moodie & Andrew J. Milat & Rob Carter, 2021. "Systematic Review to Update ‘Value of a Statistical Life’ Estimates for Australia," IJERPH, MDPI, vol. 18(11), pages 1-17, June.
    11. Khalil, Umair, 2017. "Do more guns lead to more crime? Understanding the role of illegal firearms," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 342-361.
    12. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 15 (Cost-Effectiveness and Cost-Utility Analysis)," Development Discussion Papers 2011-15, JDI Executive Programs.
    13. Muhammad Rafiq & Mir Kalan Shah, 2010. "The Value of Reduced Risk of Injury and Deaths in Pakistan—Using Actual and Perceived Risk Estimates," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 823-837.
    14. Marcela Parada-Contzen & Andrés Riquelme-Won & Felipe Vasquez-Lavin, 2013. "The value of a statistical life in Chile," Empirical Economics, Springer, vol. 45(3), pages 1073-1087, December.
    15. Min Gong & David Krantz & Elke Weber, 2014. "Why Chinese discount future financial and environmental gains but not losses more than Americans," Journal of Risk and Uncertainty, Springer, vol. 49(2), pages 103-124, October.
    16. Ryan Edwards, 2013. "The cost of uncertain life span," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1485-1522, October.
    17. James K. Hammitt, 2020. "Valuing mortality risk in the time of COVID-19," Journal of Risk and Uncertainty, Springer, vol. 61(2), pages 129-154, October.
    18. Schaffner, Sandra & Spengler, Hannes, 2005. "Der Einfluss unbeobachteter Heterogenität auf kompensatorische Lohndifferentiale und den Wert eines Statistischen Lebens: Eine mikroökonometrische Parallelanalyse mit IABS und SOEP," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36800, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Moreno Gigi & van Eijndhoven Emma & Benner Jennifer & Sullivan Jeffrey, 2017. "The Long-Term Impact of Price Controls in Medicare Part D," Forum for Health Economics & Policy, De Gruyter, vol. 20(2), pages 1-56, December.
    20. French, Michael T. & Gumus, Gulcin & Homer, Jenny F., 2009. "Public policies and motorcycle safety," Journal of Health Economics, Elsevier, vol. 28(4), pages 831-838, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:riskan:v:32:y:2012:i:2:p:200-219. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1539-6924 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.