Causes of damage in the sector of transport in Albania

AuthorEdvin Bica
PositionUniversity of Tirana
Vol. 1 No. 1
January 2017
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
ISSN 2519-1284
Acces online at
Causes of damage in the sector of transport in Albania
Edvin Bica
University of Tirana
Road accidents represent a major problem around the globe. Besides the invaluable human
tragedy for each disaster, accidents cause huge economic losses. While some of the costs are
obvious, others can be distinguished with more di culty. For example, medical treatment for
a victim may continue for several years and in the worst cases even lifelong. Also, accidents
and injuries will deprive the economy of resources and manpower. For disasters and serious
injuries this will last for the entire life expectancy of the victims. Road accidents cost include
the loss of economic resources. People cherish their lives and well-being more than pure
economic losses.
In principle, they have a value on disaster risk reduction that can be expressed as a “value
of life”. Calculating the cost of accidents in monetary terms and the corresponding value of
preventing accidents is necessary for various purposes like:
• to illustrate the importance of social and economic burden on society caused by road
• to calculate the potential monetary bene ts of various security measures.
The rst need lies in the overall level of resource planning to ensure that road safety gets the
same importance as other investments. For this purpose, it is necessary to make su cient
calculations. To make such calculations, it is necessary to know the actual number of accidents/
disasters of various kinds and corresponding unit costs.
The second need is to ensure the best possible use of every investment in order to select
appropriate activities. Bene ts from road improvements, security schemes and projects
are usually de ned in terms of saving travel time, vehicle operating costs and reducing
environmental impact. Such assessments would be incomplete if these e ects are not
considered. Bene ts are usually expressed in monetary terms to enable direct comparison with
the costs of their implementation. For this purpose, they require an accurate calculation of the
costs of accidents. For economic evaluations, it is necessary to know the estimated reductions
in the number of accidents/disasters of various kinds and monetary value.
Keywords: damage, injury, cost, human value, administrative costs.
Calculating the total cost of accidents can be a very complex operation. The collection
of necessary data is a di cult process, however comparisons between the methods
used in di erent countries have shown many similarities. Usually, the total costs
for the calculation of accidents is considered su cient use of average unit costs for
di erent levels of consequences of accidents/disasters.
A problem arising in the calculation of the total cost of road accidents is to determine
the actual number of accidents and disasters of various kinds. In most countries, the

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