Costing Road Traffic Accidents In Ethiopia

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Addis Ababa University


Road accidents have many negative costs that are regarded as socio-economic costs. In recent years, road traffic accidents have caused a significant and increasing socio-economic loss in developing countries in general and in Ethiopia in particular. With the high growth of road accidents throughout the developing world, it is essential that adequate sums of money are spent in dealing with the problem. In the absence of an estimate of accident-related economic issues, it is difficult to identify the sums of money that should be invested each year on road safety countermeasures. Nevertheless, the estimation of the national explicit costs of road accidents as well as the implicit value of the accidents is rarely highlighted to policy makers. This paper aims to review accident costing methodologies in developing countries and apply it in estimating the economic loss of road traffic accidents in the country, Ethiopia. And also it focuses to insight the challenges of estimating the costs of road accidents in low income countries where vital registration and relevant statistics concerning road accidents are scarce. A feasible method for costing road accidents in such instances is identified, and the severity and costliness of road accidents in the country is demonstrated. Accident data and cost figures of 2009/10 are considered to make the estimation of the annual traffic accident cost in Ethiopia. The analysis shows, among other things, road accidents erode more than 0.49% of the country’s Gross Domestic Product (GDP).



Costing ;Road ;Traffic