ESTIMATION OF SOCIO-ECONOMIC COST OF ROAD ACCIDENTS IN METRO MANILA

Abstract

The increasing number of Filipinos involved in road accidents each year is a serious concern. Each accident entails economic cost, not to mention the social cost of pain, grief, and suffering of families of the victims. It also has an adverse impact on the resources of the government. Using the Human Capital Approach that focuses on the Gross Output of road accident victims, costs are classified into three main components, namely: Victim Related Cost; Property Damage; and Administration Cost. The monetary value of each of these components is estimated in this study in accordance with four types of accident severity, namely fatal, serious injury, minor injury, and property damage only. This study estimated that PhP 3.5 Million is lost per fatal road accident showing a clear picture of their economic effects. In addition, social cost or pain, grief, and suffering are valued at PhP 506,450 per fatal accident.