P H, Sumayya NazninRavi Shankar, A. U.Mohan, Mithun2026-01-242024https://idr.nitk.ac.in/handle/123456789/18842Road traffic accidents (RTAs) significantly impact a country's economic advancement by consuming a large portion of its Gross Domestic Product (GDP), especially in developing countries. The proportionality of road accidents with urbanization mandates road accident cost analysis as a prime component in the planning and designing of road projects. The quantification of accidents and their associated parameters remains challenging, as it demands a meticulous approach. Moreover, allocation towards road safety infrastructure should be based on a cost-benefit analysis to ensure the most efficient use of available resources in formulating road safety policies, reinforcing the significance of road accident cost estimation. Different countries use varying methodologies for this estimation, rendering international comparisons unreliable. Notably, the existing methodologies mainly focus on developed countries, leaving a gap in the literature for developing nations. Human Capital (HC) and Willingness to Pay (WTP) are two commonly used approaches for estimating accident costs. The HC method, using diverse data sources such as police accident databases, questionnaire surveys, private hospital records, and vehicle garage bills (considering collision types), provides a component-wise breakdown of costs. The RTA cost estimation using the HC method reveals the loss of productivity, accounting for 49% of total costs, as the most significant component. Medical costs comprised 24%, vehicle damage 10%, human costs 16%, and administrative costs accounted for a mere 1%. However, this method overlooks intangible factors like pain, grief, and suffering (PGS) along with the contribution of post-retirement victims and caregivers of RTA victims. In contrast, the WTP-stated preference methodologies, Contingent Valuation (CV), and Discrete Choice Experiments (DCE) used in this study provide insight into the intangible costs, although with varying degrees of accuracy. Notably, WTP-CV estimates tend to have a lower bound, whereas WTP-DCE estimates are substantially higher. WTP-CV payment card approach reveals that accident costs are mostly influenced by population and risk reduction, with socioeconomic factors and driving behaviour also playing a major role. Meanwhile, the WTP-DCE method indicates that travel attributes have a greater impact on WTP than socioeconomic factors. Taking into account the limitations of both HC and WTP, a Hybrid method is proposed. This approach modifies the conventional HC method by incorporating the concept of Value of Statistical Life (VSL) to account for intangibles such as PGS. It also acknowledges the contributions of post-retirement victims and caregivers of RTA victims. The VSL concept, in conjunction with the Maximum Abbreviated Injury Scale (MAIS), enables a more comprehensive cost estimation, with PGS comprising 56% of total costs in the Hybrid method. In contrast, the productivity loss is reduced to 17%, ensuring the method is not solely focussed on lost productivity. Considering the nation's economic situation, using the weighted average method, the VSI for grievous and minor injuries was determined to be 19.4% and 3.6%, respectively, which can be implemented in regions with similar socioeconomic profiles. A Python-based program is developed, making this methodology more accessible and applicable. This tool can evaluate the severity of an accident, computing the resultant loss. A similar tool is also developed for calculating court-awarded compensations. The comparison results indicate that the cost and compensation differences are substantial and that compensation is typically less than the RTA cost, as it is predominantly based on the subjective judgment of the court. Using an expert opinion survey, the Hybrid method was adjudged as the best suited method for RTA cost estimation for accidents of different severity as more than 60% of the experts chose the RTA cost estimated using the Hybrid method over the other methods across various test scenarios. In conclusion, while the Hybrid methodology provides a more holistic perspective of accident costs, it still provides an estimate with a lower bound. This study does not consider some costs, such as infrastructure damage and traffic congestion. However, the approach highlights the imperative need to comprehend and estimate the true economic and intangible effects of road accidents, particularly in developing nations.enRoad Traffic Accident (RTA)Human Capital (HC) ApproachWillingness to Pay (WTP) ApproachHybrid MethodThesis