Economic benefits of Transmetro on the reduction of road accidents in the metropolitan area of Barranquilla, Colombia

The main objective of this study is to examine the reduction in the number of road accidents in the metropolitan area of Barranquilla (AMBAQ), Colombia, due to the operation of the Rapid Transit Bus (BRT) Transmetro, and to economically estimate the social benefits of the reduction in road fatalities and injuries in the AMBAQ between 2010 and 2011. To this end, we use the theoretical framework of externalities in transportation economics and a quantitative analysis, with secondary sources of information, by means of an ARIMAX time series model with structural changes and the value of statistical life for Colombian road safety. That way, we find that the annual aggregate benefit of decreasing traffic fatalities in AMBAQ was US$ 1'776.608 in 2011, and the benefit of decreasing serious injuries was US$ 6'866.441 approximately.