A benefit-cost analysis of Forward Collision Warning Systems for the trucking industry found benefits per dollar spent values of $1.33 to $7.22 with varying estimates of efficiency and annual VMT.
U.S. motor carrier experience with forward collision warning systems
The technology evaluated represented a typical system available on the commercial market designed to provide audible and/or visual warnings to drivers when another vehicle or object is detected within a predefined headway having an unsafe closing rate as determined by on-board computers and a forward-looking Doppler radar system.
The benefit-to-cost analysis evaluated benefits in terms of crash cost avoidance and costs in terms of total technology costs. The data for potential benefits were collected from insurance companies and motor carriers, and represented actual expenses incurred in a CMV crash. The potential benefits were measured against the purchase, installation, and operational costs of the technology used in motor carrier operations. Benefit-to-cost ratios were calculated for different levels of vehicle miles traveled, technology purchase prices, and efficacy rates of 21 and 44 percent as reported by industry sources. Net present values were computed using three and seven percent discount rates applied to future benefits and costs to account for inflation and the time value of money over a five year technology lifetime.
The results indicated that for every dollar spent, carriers would get more than a dollar back in benefits, ranging from $1.33 to $7.22 based on different vehicle miles traveled (VMT), system efficacy rates (crash prevention rates), and technology purchase prices.
Author: Murray,Dan; Sandra Shackelford; and Amy Houser
Published By: U.S DOT Federal Motor Carrier Safety Administration (FMCSA)
Prepared by ATRI for the FMCSA
Source Date: 02/27/2009
Other Reference Number: Report No. FMCSA-RRT-09-021URL: http://www.fmcsa.dot.gov/facts-research/research-technology/report/09-021-RP-Forward-Collision.pdf
Average User Rating