Statistics And Control Analysis Of Safe Production Cost Of Domestic Corporations

Chinese economy is developing rapidly these years; however, the amount of production safety accidents remains a high level and it causes widespread concern. Firstly, this article analyses the production safety status of China and calls the enterprises production safety level of expectations, according to the relationship between the safety production level and economy development level, as"the expected level of production safety". This article calls the actual level of production safety as"the optimization level of production safety"by analyzing the enterprises'decision making about production safety from cost perspective. I estimate the production safety level of Chinese enterprises and petrochemical industry and try to explain the gap between the expected level of production safety and the optimization level of production safety by using the data and research results about the relationship of production safety and economic development. Secondly, I point out the cost distortion in decision-making and inquire its origin by using the research results of enterprises'investment decision-making about safety cost. There are three kinds of cost distortions in decision-making. They are indirect cost, exterior attributes of production safety and the preference in choice of different enterprises. Thirdly, corresponding with the three distortions in enterprises'decision-making of production safety, I analyze three approaches to improve production safety level. The first is to further specify the concept of safety cost and set proper accounting subject. The second is to internalize the external cost and establish criterion system. The third one is standardizing the licence system of production safety to increase the access threshold, decrease the short-term and speculation in enterprises'decision-making. They mainly correct the cost distortions in production safety, improve level of production safety, and make"the optimization level of production safety"consistent to"the expected level of production safety". Lastly, I analyze the effect of these approaches in Chinese petrochemical industry as a case.