The move in the past decade to deregulate industries that were tightly regulated has raised the question of whether decreased regulation has brought with it decreased safety. The book considers this question in relation to the airline and motor freight industries, and the studies conclude that there is little evidence that these forms of transport have become less safe as a result of deregulation. The book derives from a conference which attracted scholars of excellent reputation in the field of regulation and safety, including Thomas Gale Moore, W. Kip Viscusi, Elizabeth E. Bailey, and Joseph Stiglitz. Although the studies concentrate on transportation in America, there is a chapter which deals exclusively with the question of regulation of road freight transport in Great Britain.
Recent legislation deregulating the airline and trucking industries has enhanced competition and reduced real transportation prices by putting pressure on firms to operate more efficiently. Yet, with the entry of many new small airlines and trucking firms facing the financial pressures of competition, many legislators fear that public safety will be reduced due to compromises in maintenance, equipment replacement, recruitment and training. This volume examines the theoretical and empirical issues involved in the debate on the relationship between safety and economic performance in the airline and trucking industries. Contributors discuss such factors as the role of government as provider of safety oversight personnel and airport and road space quality, and conclude that the government has not acted quickly enough to provide the additional safety resources to meet the changed needs of the two industries, though the evidence does not support the notion that deregulation has compromised safety.
Recent legislation deregulating the airline and trucking industries has enhanced competition and reduced real transportation prices by putting pressure on firms to operate more efficiently. Yet, with the entry of many new small airlines and trucking firms facing the financial pressures of competition, many legislators fear that public safety will be reduced due to compromises in maintenance, equipment replacement, recruitment and training. This volume examines the theoretical and empirical issues involved in the debate on the relationship between safety and economic performance in the airline and trucking industries. Contributors discuss such factors as the role of government as provider of safety oversight personnel and airport and road space quality, and conclude that the government has not acted quickly enough to provide the additional safety resources to meet the changed needs of the two industries, though the evidence does not support the notion that deregulation has compromised safety.