Measuring the Economic Burden of Road Traffic Accidents: Assessment Methodologies and Their Impact on Road Safety Policies

Abstract

This research examines the economic burden of road traffic accidents, focusing on measurement methodologies, public policy efficiency, and reform challenges. Employing descriptive-analytical and comparative approaches, the study analyzes international reports and peer-reviewed literature. Findings reveal that the economic cost exceeds 3% of global GDP annually, ranging from 1.85% to 3.3% in various countries, with indirect costs (productivity and income loss) constituting up to 95.7% of total burdens. Two main measurement approaches are identified: the Human Capital Approach used in developing countries and the Willingness-to-Pay Approach in developed nations. International experiences from Singapore, Slovakia, and Brazil demonstrate that integrated policies combining technology, legislation, infrastructure, and awareness significantly reduce accidents and costs, with return on investment reaching $6.30 per dollar spent. The research concludes that road safety investment is a highly effective development strategy, recommends establishing national road safety funds and specialized institutions, and calls for unified measurement methodologies and enhanced Arab and international cooperation. Ultimately, reducing these burdens protects human capital, saves lives, and advances sustainable development.