A benefit-cost analysis of Lane Departure Warning System for the trucking industry found benefits per dollar spent values of $1.37 to $6.55 with varying estimates of efficiency and annual VMT.

U.S. motor carriers experience with lane departure warning systems

Date Posted
09/20/2011
Identifier
2011-B00721
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Analysis of Benefits and Costs of Lane Departure Warning Systems for the Trucking Industry

Summary Information

The goal of the Federal Motor Carrier Safety Administration (FMCSA) is to reduce the number and severity of commercial motor vehicle (CMV) crashes. Over the last several years, FMCSA has collaborated with the trucking industry to test, evaluate, and encourage the deployment of several onboard safety systems (OSS). This project builds on previous field operational testing by refocusing benefit-cost assessments from more general societal impacts to more targeted motor-carrier-industry outcomes.

METHODOLOGY

The technology evaluated represented a typical system available on the commercial market that can warn drivers of unsafe lane departures using a forward-looking video camera and on-board computers to determine that a vehicle is traveling above a certain speed threshold for an approaching curve.

The benefit-to-cost analysis evaluated benefits in terms of crash cost avoidance and costs in terms of total technology costs. The data for potential benefits were collected from insurance companies and motor carriers, and represented actual expenses incurred in a CMV crash. The data for potential benefits was collected from insurance companies and motor carriers, and represented actual expenses incurred in a CMV crash. The potential benefits were measured against the purchase, installation, and operational costs of the technology used in motor carrier operations. Benefit-to-cost ratios were calculated for different levels of vehicle miles traveled, technology purchase prices, and a range of efficacy rates (23 to 53 percent) as derived from field testing and industry sources. Net present values were computed using three and seven percent discount rates applied to future benefits and costs to account for inflation and the time value of money over a five year technology lifetime.

FINDINGS

The results indicated that for every dollar spent, carriers would get more than a dollar back in benefits, ranging from $1.37 to $6.55 based on different vehicle miles traveled (VMT), system efficacy rates (crash prevention rates), and technology purchase prices.
Goal Areas