Abstract
Today’s industrial production relies heavily on inputs that pose potential threats to public health or the environment (hazmat). These hazmat must be safely transported from their origin to destination to be processed or properly disposed. Many unexpected events may result in hazmat spills exposing the population and the environment to severe damage. Combining available data sources, the two main components of the associated risks can be estimated: the probability of an accident during hazmat transportation, and the consequences associated to such an event. The social cost of these consequences can be internalized through an appropriate road price scheme.
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This paper presents a methodology to estimate the marginal cost of hazmat trips, based on the probability of an accident involving hazmat as well as its associated consequence. An application to the case of hazardous waste transportation in Santiago, Chile, is presented.
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Garrido, R.A. Road Pricing for Hazardous Materials Transportation in Urban Networks. Netw Spat Econ 8, 273–285 (2008). https://doi.org/10.1007/s11067-007-9057-0
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DOI: https://doi.org/10.1007/s11067-007-9057-0