Chemical plant innovative safety investments decision-support methodologyChemical plant innovative safety investments decision-support methodology
Faculty of Applied Economics
2009Chicago, Ill., 2009
Journal of safety research. - Chicago, Ill.
40(2009):6, p. 411-419
University of Antwerp
Introduction This article examines the extent to which investing in safety during the creation of a new chemical installation proves profitable. Method The authors propose a management supporting cost-benefit model that identifies and evaluates investments in safety within a chemical company. This innovative model differentiates between serious accidents and less serious accidents, thus providing an authentic image of prevention-related costs and benefits. In classic cost-benefit analyses, which do not make such differentiations, only a rudimentary image of potential profitability resulting from investments in safety is obtained. Results The resulting management conclusions that can be drawn from such classical analyses are of a very limited nature. The proposed model, however, is applied to a real case study and the proposed investments in safety at an appointed chemical installation are weighed against the estimated hypothetical benefits resulting from the preventive measures to be installed at the installation. Conclusion In the case-study carried out in question, it would appear that the proposed prevention investments are justified. Impact on industry Such an economic exercise may be very important to chemical corporations trying to (further) improve their safety investments.