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A COST-BENEFIT ANALYSIS OF UNITED STATES MOTOR CARRIER SAFETY PROGRAMS.

A cost benefit analysis is conducted of two federal programs to improve truck safety. One program involves visits by federal inspectors to the operating bases of firms to investigate safety management practices. A rating system is used to determine whether further visits are necessary, and whether enforcement and educational action are needed. The benefits from this program exceed the costs by a ratio of over 4:1. The other program is a system of roadside inspections to check for compliance with federal safety laws. Vehicles and/or drivers that fail to comply are placed "out of service" until the problem is rectified. For this program, the benefits only just exceed the costs under the most favorable assumptions.