Preliminary Analysis Of Economic Benefits On Railway Safety Investment

In China, Railway is the central feature among national transportation. Railway transportation accomplishes material circulation and as well as responsible for forwarding passengers, which is known as one of the main modes of transportation. Nevertheless, it will bring a massive loss of personal casualty and the economy of the country when an accident occurs. Additionally, it will also have passive impact on sustainable development for the society. 'Safety equals benefits' has become one of the common sense for community. As the first step of safety work—investment, its relationship with economic benefits and the quantitative issues arise after the investment needs to be clarified and discussed. This dissertation criticizes the relationship between safety investment and other two aspects, includes less transportation derogation benefits and work efficiency improvement benefits.This dissertation's main research content, measurement and production are as follows:1. Analysis of the characteristics of national railway transportation production, effects of safety and status of production.2. Summarizes classification of railway transportation safety investment and the effect factors, expatiate the structure of safety costs, introducing analysis of safety costs and its implementations on railway corporates' investment decision making and safety management. Furthermore, it analyses classification, implementation, and measurement of economic benefits. It also provides fundamental knowledge in later analysis of derogation and efficiency improvement.3. Introduces and analyses economic marginal investment theory, equilibrium effect theory, dive in & out theory, and brings these theories mentioned above to the research on issues of railway transportation investment. Moreover, it also discusses the way of fix on 'the best safety investment point' and 'the most advantageous investment group'.4. Divides the benefits of safety investment into less derogation output and work efficiency improve output.1) On the analysis of derogation benefits, it is weighted by accident occur probability and accident loss. The value of loss has been divided in details as estate loss, life loss and economy loss. However, it will be using quantitative analysis model to clarify the 3 aspects mentioned above. It then calculates the actual value of labor loss per head by using national economy and railway transportation data. As a result, the economy delay loss caused by transportation accident is 16836.64 million Yuan. As a result, the indirect of loss of transportation accidents is much greater than direct economic loss.2) According to the analysis of work efficiency, used the model of production function and analytic hierarchy process (AHP) to work out the actual ROI after safety investment is implemented. On the basis of railway transportation data 2003-2007, worked out the contribution percentage of safety investment is 4.32%, the increment benefits of transportation is 112.51 a hundred billion Yuan. To conclude, railway transportation safety investment would earn a significant outcome in increment.