The investment model of safety management in port enterprises and its analysis under uncertainties

Wenchao Wang ()
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Wenchao Wang: Civil Aviation University of China

International Journal of System Assurance Engineering and Management, 2021, vol. 12, issue 2, No 3, 245-251

Abstract: Abstract Regulating the expenditures and capital investment in safety management is one of the effective ways to improve the level of safety in port enterprises. Such spending’s aims to reduce accident losses and improve productivity but capital investment is subject to uncertainties. This paper develops a safety management model taking into account investment uncertainties in operation and management conditions. A numerical simulations analysis based on this model shows that (1) the stability of operational safety delays the investment in safety management, and the amount of investment in safety management is reduced if the stability lasts for a long time, and (2) the stability of safety management conditions also delays the investment, but policy mandatory requirements and government subsidies offset these delays.

Keywords: Safety management; Real options; Investment timing; Investment trigger; Capacity of investment (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s13198-020-01042-2

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