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Economic valuation of damages originated by major accidents in port areas
Authors:Andrea Ronza  Lara Lzaro-Touza  Sergi Carol  Joaquim Casal
Institution:aDepartment of Chemical Engineering, Centre d'Estudis del Risc Tecnològic (CERTEC), Universitat Politècnica de Catalunya. Diagonal 647, 08028-Barcelona, Catalonia, Spain;bDepartment of Geography and Environment, London School of Economics and Political Science, Houghton Street, London WC2A 2AE, England
Abstract:Due to special features of ports – variety of activities: storage and loading/unloading of hazardous materials; circulation of ships, lorries and trains; proximity to urban zones; etc. – major accidents can be associated with severe damages. The cost of such accidents must be known to allow for compensation to people and companies. A procedure is presented to estimate the cost of damages suffered by people, equipment and environment. Criteria to assess the cost of damage to people – a controversial issue – are discussed, establishing a method to predict the number of people killed, injured and evacuated. Economic compensation is proposed. Environmental damages are also considered. These include potential damage to the atmosphere, soil, water and fauna. Estimates of the cost of the equipment and buildings affected by the accident are proposed. Finally, an assessment of the loss of profits due to activity breakdown and indirect costs is analysed. The methodology presented can easily be extended to general, inland process and storage sites.
Keywords:Accident cost  Port  Major accident  Risk analysis  Social risk  Environmental impact
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