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Economic Analysis of Safety Analysis of RLC
Economic Analysis of Safety Analysis of RLC
Forrest M. Council
BMI-SG, 8330 Boone Blvd., Suite 700, Vienna, VA 22182
Phone: (919) 408-0898; e-mail: forrestbmi@mindspring.com
Bhagwant Persaud
Department of Civil Engineering, Ryerson University
350 Victoria Street, Toronto, Ontario, Canada M5B 2K3
Phone: 416-622-3672; e-mail: bpersaud@ryerson.ca
Craig Lyon
Department of Civil Engineering, Ryerson University
350 Victoria Street, Toronto, Ontario, Canada M5B 2K3
Phone: 416-489-9654; e-mail: craig.lyon@rogers.com
Kimberly Eccles
BMI-SG, 8330 Boone Blvd., Suite 700, Vienna, VA 22182
Phone: 703-847-3071; e-mail: keccles@bmisg.com
Mike Griffith
Federal Highway Administration, Office of Safety Research & Development
6300 Georgetown Pike, T-210, McLean, VA 22101
Phone: (202) 493-3316; e-mail: mike.griffith@fhwa.dot.gov
Eduard Zaloshnja
Pacific Institute for Research and Evaluation (PIRE)
11710 Beltsville Dr., Suite 300, Calverton, MD 20705
Phone: (301) 755-2734; e-mail: zaloshn@pire.org
Ted Miller
Pacific Institute for Research and Evaluation (PIRE)
11710 Beltsville Dr., Suite 300, Calverton, MD 20705
Phone: (301) 755-2734; e-mail: miller@pire.org
ABSTRACT
Red light camera systems are believed to decrease right-angle crashes at which they are targeted but to also have
the undesirable side effect of increasing rear-end crashes. This belief was confirmed in a before-after study of 132 RLC
installations in 7 US jurisdictions reported on in a companion paper. In that research, the extent to which the increase in
rear-end crashes negates the benefits for right-angle crashes was unclear, given the perceptions of severity differences in the
two crash types. This paper reports on an examination of the economic costs of the changes, based on a consideration of
rear-end and right-angle unit crash costs for various severity levels, in order to establish the aggregate effects of the RLC
programs evaluated. Part of the project, which is also discussed in the paper, derived the required unit costs using
information from national US databases. The overall results show a modest to moderate economic benefit of between
$28,000 and $50,000 per treated site year depending on assumptions made. The ability to aggregate economic costs across
crash types and severity created the opportunity to try to isolate program implementation factors and intersection
characteristics that would favor the installation of RLC systems, using the aggregate economic benefit at each RLC site as
the outcome variable. This investigation found, for example, that greatest economic benefits are associated with the highest
total entering AADTs, the largest ratios of right-angle to rear-end crashes and with the presence of protected left turn
phases.
KEY WORDS: red light cameras; safety evaluation; economic analysis; intersection safety; crash costs
WORD COUNT: 5228 (text) plus 3 tables @ 250 = 5978 words total
Date of Submission November 19, 2004
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
Background
A companion paper (1) has presented the elements of a multi-jurisdictional US study,
sponsored by the Federal Highway Administration (FHWA), which estimated the effects of red
light camera (RLC) systems on crashes. That study used before-after data for 132 RLC sites from
seven jurisdictions (Montgomery and Howard Counties as well as Baltimore in Maryland,
Charlotte, North Carolina and three California cities of El Cajon, San Diego and San Francisco) and
the empirical Bayes (EB) methodology (2) to estimate the effects on right-angle and rear-end crash
frequencies. Consistent with what was found in other jurisdictions in previous studies, a reduction
in right-angle crashes and an increase in rear-end ones was detected overall and fairly consistently
across the 7 jurisdictions. Table 1, taken from the companion report, shows the results of the
frequency analysis. (Note that “Injury” crashes here are defined as severities K, A, and B crashes.
The frequencies shown do not contain the “possible injury” crashes captured by KABCO-level “C”.
Thus, these crashes could be labeled “definite injury” crashes.)
As Table 1 indicates, the crash frequency analysis is inconclusive on the aggregate effect of
RLC systems because the extent to which the increase in rear-end crashes negates the benefits for
right-angle crashes is unclear given the perceptions of severity differences in the two crash types.
An examination of the aggregate economic costs of the changes based on a consideration of rear-
end and right-angle unit crash costs for various severity levels seemed necessary to establish the
overall effects of the RLC programs evaluated. This examination is the first of two analyses
addressed in this paper. It should be noted that none of the previous studies of RLC effects reviewed
attempted such a formal analysis of the aggregate effects for the various crash and severity types.
The second analysis is related to further examination of the implication of the crash-
frequency results in the companion study that RLC systems would be most beneficial at
intersections where there are relatively few rear-end crashes and many right-angle ones. To provide
better guidance on this issue requires an examination of the aggregate effect, i.e., the aggregate
economic benefit for intersections grouped by the numbers of each crash type. That examination,
too, is the subject of the extended research covered in this paper, research that sought, in general, to
isolate all of the factors that would favor (or discourage) the installation of RLC systems, using the
net economic benefit as the outcome variable.
The project effort covered in the companion paper involved the choice of jurisdictions to
study and the development of a detailed evaluation plan based on empirical Bayes (EB)
methodology, the collection of data from each chosen jurisdiction and the development of an
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
analysis file, the EB analysis of before-after crash frequency data in each jurisdiction, and the
combination of data from the diverse jurisdictions to develop an overall estimate of RLC effect on
right-angle and rear-end crash frequency. Details of these aspects are described in the companion
paper and are therefore not covered here. What is covered are the following:
1. Development of per-crash cost estimates for different crash types and police-reported crash
severities.
2. EB analysis of before-after economic cost of crashes in each jurisdiction by crash type and
severity.
3. Aggregation of the economic cost data across crash types and severity and then across
jurisdictions.
4. Exploratory analysis and regression modeling of cross-jurisdiction aggregate economic costs to
identify the intersection and RLC program characteristics which are associated with the greatest
economic benefits of RLC systems or which discourage their use.
5. Development of RLC implementation guidelines from these analyses of economic costs.
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
(e.g., two subgroups K+A+B+C, O). The crash types of interest are right-angle, rear-end, and other
(i.e. other than rear-end and right-angle). The following notation is used:
CostBi = cost of crashes in KABCO subgroup i actually occurring at the treatment sites in the
before period
= cost of crashes actually occurring at the treatment sites in the jurisdiction in the
costA
after period
= expected cost of crashes in the after period over all treatment sites had there been
costA
no RLC (after correcting for regression to the mean and traffic volume and other differences
between before and after periods)
VAR{ costA} = variance of the expected cost of crashes over all treatment sites in the after
period without RLC
Bi = observed number of crashes in KABCO subgroup i over all treatment sites in the before
period
i = expected number of crashes in KABCO subgroup i over all treatment sites in the after
period without RLC (after correcting for regression to the mean and traffic volume and other
differences between before and after periods). These were derived for the crash frequency
analysis presented in the companion paper, using the empirical Bayes (EB) methodology.
Of interest at this point is how estimates were obtained for the 4 terms, costA, VAR{ costA}, CostA
and VAR{ costA}. Approximate methods used are given below.
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
The value of costA (i.e., actual after crash cost) was estimated by summing the individual
PIRE costs for each crash in the after period over all treated intersections in the jurisdiction. The
value of VAR[ costA] was estimated by summing the variance for each individual cost of the crashes
of interest in the after period.
costA, (i.e., the expected after period cost without treatment) was estimated for a KABCO
subgroup by first estimating an expected cost for each site as the product of i = expected number
of crashes in the KABCO subgroup and the PIRE unit economic cost for the crash type, KABCO
subgroup and speed limit category. These were then summed over all treatment sites and KABCO
subgroups to get costA.
VAR{ costA} for each site and subgroup was taken as product of i and the PIRE unit
variance for the crash type, KABCO subgroup and speed limit category. These variances were then
summed over all sites and KABCO subgroups. This is an approximation that likely underestimates
the variance, given that there is variance in the EB estimates of the expected number of crashes
without treatment. However, the PIRE unit cost variances are also approximations in that they do
not include all components (e.g. variance in medical costs by diagnosis). Fortunately, the point
estimates of the economic effects, which are of primary interest in this analysis, are quite insensitive
to VAR{ costA}.
As noted, the theory so far applies for a given crash type of the three comprising all crashes.
To obtain estimates of economic effect for all crash types combined, costA, VAR{ costA}, CostA
and VAR{ costA} are first determined for each crash type as outlined above and then summed over
the three crash types before applying Equations 1 to 4.
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
where is the calibrated intercept and b1, b2, … , bn are the estimated effects on cost per after
period year of factors x1, x2, x3 ….xn.
Stepwise linear regression was performed with the SAS statistical analysis software
package, using the estimates of the cost per after period year as estimates of the dependent
variable. It should be pointed out that the absence of a variable in the final model does not
necessarily mean that the variable would not affect the safety impact of RLC since an effect with
low statistical significance could result from correlation with other variables, a lack of variation in
the data or a sample that is too small. In addition, it should be emphasized that the generally small
size of the aggregate economic effect of RLC was already strongly indicative of the reality that one
is unlikely to detect many factors that affect the safety effect of RLCs.
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
Table 2: Original comprehensive crash cost estimates by severity level,
and combined estimates used in the economic effects analysis.
Crash Severity Level Angle Crash Cost ($) Rear-end Crash Cost ($)
K $4,090,042 $3,781,989
A $120,810 $84,820
B $103,468 $27,043
C $34,690 $49,746
O $8,673 $11,463
(standard deviation) (1,285) (3,338)
K+A+B+C $64,468 $53,659
(standard deviation) (11,919) (9,276)
The results show a positive aggregate economic benefit of more than $14 million over
approximately 370 site years, which translates into a crash reduction benefit of approximately
$38,000 per site year. The implication from this result is that the lesser severities and generally
lower unit costs for rear-end injury crashes together ensure that the increase in rear-end crash
frequency does not negate the decrease in the right-angle crashes targeted by red light camera
systems.
Examination of the aggregate economic effect per after period year for each site indicates
substantial variation, much of which could be due to randomness. However, it was reasonable to
suspect that some of the differences may be due to factors that impact RLC effectiveness. The
results of the examination of those factors are described next.
Since sample size considerations forced the combination of all injury crashes into one
category (K+A+B+C), there was concern that the distribution of crash severity within this combined
category might have changed between the before and after periods for either or both crash types.
That is, injury-related angle crashes could have become more, or less severe between the two
periods. If so, the use of the same unit injury-crash cost for both periods would be questionable.
Subsequent analysis of the before and after injury-crash distributions for both crash types indicated
no discernable severity shift for rear-end crashes, but that the angle crashes remaining in the after
period might be more severe in the after period in two of the seven jurisdictions. An attempt was
made to estimate the potential effect of this shift on the economic savings, even though this could
only be done using anomalous data for individual KABCO categories that we argued earlier against
TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
using. With this data, it appears that if the shift were real, the overall cost savings reported in the
last row of Table 3 could be decreased by approximately $4 million. Note, however, that there
would still be positive economic benefits, even if it is assumed that the unit cost shifts were real and
correctly estimated.
Clearly some of these variables that indicate effects are correlated and therefore may show effects
that are not real. For example, left turn protection is likely related to traffic volume levels. And high
publicity levels may exist in jurisdictions with the highest traffic volumes. To mitigate this
difficulty the multivariate regression analysis was undertaken to see if the effects of a given variable
remain if the effects of other variables are simultaneously considered. This additional analysis
confirmed the direction of all of the effects observed above except for the penalty variable and the
one related to the presence of a left-turn protected phase.
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TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
In interpreting these results, several important points should be considered:
1. Factors other that the ones identified have been examined. These include traffic signal actuation,
presence of turn restrictions, major road speed limit, and number of approach legs for which the
inability to detect an effect may have been due to the small samples for one level of the factor (e.g.,
only 27 of the 132 sites had no protected left-turn phases).
2. The intent of the multivariate regression analysis was to confirm the direction of the effect, not to
establish effects with statistical significance or to assess the size of the effect. To undertake analyses
for these purer purposes would have required a substantially large database, much more precision in
the estimate of economic effect at each site, and more accurate specification and measurement of
the independent variables. For the purposes of this cursory investigation, it suffices that both the
univariate and multivariate analyses are reasonably in accord with the perceptions that are
commonly held by those involved in red light camera programs.
3. Some of the variables may well be surrogates for others that more directly influence the
aggregate economic effects. For example, the presence of left turn protection, as noted above, is
likely associated with the volume of left turning traffic or more directly with opportunities for
crashes involving a vehicle going straight thru and one turning left at the end of a protected or
permitted phase.
4. The results do not provide numerical guidance for trading off the effects of various factors. The
intent of identifying these factors is to assist RLC implementers in the choice of sites for treatment
installation, and in determining the type of signing and publicity that might enhance the results of
the program. With respect to site identification, the results indicate that the implementer should
give the highest priority for RLC implementation to the sites with most or all of the positive binary
factors present (e.g., left-turn protection) and with the highest levels of the favorable continuous
variables (e.g. higher ratios of right-angle to rear-end crashes). Based on the combined univariate
analyses and modeling, as well a logical consideration of the result of the crash effects analysis that
rear-end crashes increase and right angle ones decrease following RLC implementation, it would
appear that the most important determinant of site choice would be a high ratio of right-angle to
rear-end crashes. Once site choice is made, signing at both intersection and city limits, and a high-
level publicity campaign would also appear to increase program benefits.
5. If it is of interest to quantify the aggregate benefit for a contemplated RLC site it is possible to do
so using the SPFs and the likely estimates of safety effect presented in Table 1 in a procedure, the
rudiments of which are documented in two recent publications (9, 10). In that procedure, crash and
traffic data at the intersection of interest are used to obtain an empirical Bayes estimate of the
expected number of crashes by impact type and severity without RLC. The estimate of likely safety
effect from Table 1 is applied to the EB estimate to derive an estimate of the expected change in
crashes per year by type with RLC implemented. The cost per crash derived for this project can then
be applied to the crash changes expected for each impact and severity type. The results can then be
summed to obtain an estimate of the aggregate benefit per year for the contemplated installation.
Conclusions
This economic analysis represents the first attempt in the known literature to combine the
positive effects of right-angle crash reductions with the negative effects of rear-end crash increases,
and to identify factors that might further enhance the effects of RLC systems. Larger crash sample
sizes would have added even more information. Based on these current analyses, the following
primary conclusions are drawn.
1. Even though the positive effects on angle crashes of RLC systems is partially offset by
negative effects related to increases in rear-end crashes, there is still a modest to moderate
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TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
economic benefit of between $28,000 and $50,000 per treated site year, depending on
whether one examines only injury crashes or includes PDO, and on whether the shift to
more severe angle crashes after treatment in two of the seven jurisdictions is, in fact,
indicative of a real trend.
2. Even if modest, this economic benefit is important since, as operated today, the RLC
systems pay for themselves through red-light-running fines generated. This differs from
most safety treatments where there are installation, maintenance and other costs that must be
weighed against the treatment benefits.
3. The modest benefit per site is an average over all sites. As the analysis of factors that impact
showed, this economic benefit can be increased through careful selection of the sites to be
treated (e.g., sites with a high ratio of angle to rear-end crashes as compared to other
potential treatment sites) and program design (e.g., high publicity, signing at both
intersections and at jurisdiction limits).
Acknowledgement
This study was funded by the Federal Highway Administration and would not have been
possible without the enthusiastic cooperation by officials in the study jurisdictions in assembling the
database. The guidance of the FHWA panel is greatly appreciated. The fundamental research that
led to some of the methodological ideas used in the study was funded under an operating grant (to
Persaud) from the National Sciences and Engineering Research Council of Canada (NSERC).
References
1. Persaud B., Council F., Lyon C., Eccles K., Griffith M. “A Multi-Jurisdictional Safety Evaluation
of Red Light Cameras. Accepted for presentation at the 2005 Annual Meeting, Transportation
Research Board. Under consideration for presentation in Transportation Research Record.
2. Hauer, E., Observational Before-After Studies in Road Safety: Estimating the Effect of Highway
and Traffic Engineering Measures on Road Safety. Pergamon Press, Elsevier Science Ltd., Oxford,
U.K. 1997.
3. Blincoe, L.J.; Faigin, B.M. (1992). The Economic Cost of Motor Vehicle Crashes, 1990.
Washington DC: National Highway Traffic Safety Administration, DOT HS 807 876.
5. Zaloshnja, E., Miller, T.R. Romano, E.O., Spicer, R.S. (2004) Crash Costs by Body Part Injured,
Fracture Involvement, and Threat-to-Life Severity, United States, 2000, Accident Analysis &
Prevention, 36:3, 415-427.
6. Zaloshnja, E. Miller T., Council F. and B. Persaud. “Comprehensive and Human Capital Crash
Costs by Maximum Police-Reported Injury Severity within Selected Crash Types”. Accepted for
presentation at the 2004 Annual Meeting, American Association for Automotive Medicine, Key
Biscayne, Florida, September 2004.
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TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.
7. Federal Highway Administration. Economic Cost of Crashes by Crash Geometry. Draft Report.
Office of Safety Research & Development. 2004.
8. U.S. Office of Management and Budget. Regulatory Program of the United States. Washington,
DC: U.S. Government Printing Office; 1989.
9. Persaud B., McGee H., Lyon C. and D. Lord. “Development of a procedure for estimating the
expected safety effects of a contemplated traffic signal installation” Transportation Research
Record 1840, pp. 96-103, 2003.
10. Harwood, D.W., Council, F.M., Hauer, E., et al. Prediction of the Expected Safety Performance
of Rural Two-Lane Highways. FHWA-RD-99-207, U.S. Department of Transportation, December
2000.
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TRB 2005 Annual Meeting CD-ROM Paper revised from original submittal.