The economics of road crashes

ASIDE FROM being a public safety concern, road crashes also take a significant toll on the economy. In Iloilo, the staggering 3,184 road crashes recorded from January to November 2024 remind us of the financial and human costs that reckless driving and poor road safety measures entail. Beyond the 126 lives lost — a 26% increase from 2023 — these incidents have led to 1,285 injuries and 1,773 cases of property damage, all of which carry profound economic implications.

The direct costs of road crashes are evident in the immediate aftermath: hospital bills, vehicle repairs, and emergency response services. For families of victims, these expenses often lead to financial hardship, especially when the breadwinner is incapacitated or killed. With motorcycles accounting for over 64% of crashes in Iloilo, many of these victims belong to lower-income groups for whom such expenses are catastrophic.

Indirect costs add to the burden. Lost productivity from injured workers or fatalities affects families, businesses, and the broader economy. Traffic disruptions caused by accidents delay deliveries, interrupt business operations, and waste valuable time for commuters. Meanwhile, government resources are stretched thin as agencies address the aftermath of crashes, from law enforcement investigations to road repairs and healthcare services.

It is estimated globally that road crashes cost countries up to 3% of their GDP (gross domestic product) annually. While local figures for Iloilo may vary, the economic impact is undoubtedly substantial, emphasizing the need for preventive measures to reduce these incidents.

Investing in road safety is therefore an economic imperative, not just a moral obligation. Preventive measures may require upfront costs, but they pay off in the long run by saving lives, reducing injuries, and minimizing damage. Iloilo must address hazardous road conditions, including potholes, insufficient lighting, and poorly designed intersections. Building safer roads, adding pedestrian crossings, and ensuring regular maintenance can drastically reduce the likelihood of crashes.

Reckless driving remains the leading cause of crashes, accounting for 2,318 incidents this year. Strict enforcement of traffic laws — particularly against speeding, drunk driving, and the non-use of helmets — can act as a deterrent. Investing in more advanced equipment such as speed cameras and breathalyzers, as well as increasing the presence of traffic enforcers, will strengthen these efforts.

Driver errors caused 788 crashes in Iloilo in 2024. Public awareness campaigns and driver training programs tailored to the province’s needs can help instill safe driving practices. These programs must target high-risk groups, particularly motorcycle riders who dominate crash statistics.

Of course, enhancing Iloilo’s capacity to respond quickly to accidents must not be overlooked because this can save lives and reduce the severity of injuries. This includes better-equipped ambulances, training for first responders, and a centralized emergency hotline for rapid coordination.

By treating road safety as an economic investment rather than an expense, Iloilo can save lives, protect livelihoods, and reduce the financial burden on families and the government alike.

LEAVE A REPLY

Please enter your comment!
Please enter your name here