Why Roadworthiness Regulation in Europe is Not Efficient. The Case of N1-Vehicles in Belgium.

Abstract

Main objective of the study is to find out the socio-economic benefits and costs resulting from a change of the inspection cycle of N1 vehicles (vehicles used for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes) in Belgium. The current Periodic Technical Inspection (PTI) has a cycle of 1-1-1-1, which means that every year the N1 vehicles are inspected. The discussed change is the introduction of a cycle 4-1-1-1, which means that the first inspection of a new N1-vehicle takes place after 4 years of usage. As socio-economic assessment method the cost-benefit analysis is used. Examination years are the years 2008 and 2009. As cost-unit rates national Belgian values are used. The results are benefit costs ratios of 8,7, which means that the current annual inspection leads to societal benefits of 8,7 Euro in the case of paying 1 Euro for the inspection. Otherwise this result means that a change to another inspection regimes will lead to 8,7 Euro losses for the society by saving only 1 Euro due to the reduced number of inspections.

Keywords: cost-benefit analysis, roadworthiness inspection, european transport policy, traffic safety

JEL Classification: D61, D78, L51, R41