Safety, economic incentives and insurance in the Norwegian petroleum industry

Petter Osmundsen, Terje Aven and Jan Erik Vinnem

Reliability Engineering and System Safety, 2008, vol. 93, issue 1, 137-143

Abstract: There is an increased use of key performance indicators and incentive schemes in the petroleum industry. Applying modern incentive theory, we explore what implications this management trend has for injury and major accident prevention efforts and safety. Can economic incentives be designed for accident prevention activities? In cases where this is not possible, what are the challenges for the safety efforts? In particular, how are safety efforts affected by enhanced economic incentives for other performance dimensions like production and rate of return? Can safety be neglected? What remedies are available?

Keywords: Safety; Economic incentives; Key performance indicators (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reensy:v:93:y:2008:i:1:p:137-143

DOI: 10.1016/j.ress.2006.11.008

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