Estimating the Cost of Road Traffic Accidents in Iran using Human Capital Method

Abstract

Road traffic accidents and the effects they subsequently incur are increasing dramatically, and estimating the cost of road traffic crashes could be a vital step in improving the recognition of this widespread problem. The main objective of this paper is to estimate the cost of road traffic crashes in Iran using the Human Capital (HC) Method. Results of this study indicate that the cost of road traffic crashes in Iran for the year 2009 was approximately 114,455 billion Iranian Rials (about $US 11.458 billion), which accounted for 1.41% of Iran's Gross National Product (GNP) in that year. This study shows that lost output and property damage account for the largest proportion of this cost, whereas human, administration and medical costs are the next highest contributors. In addition, this study estimates the cost of accidents in Iran for the year 2009, depending on their status as fatal, causing serious injury, slight injury and property-damage-only.