Intelligent Transport Systems as a Tool for Sustainable Road Safety Management: Economic Assessment for Emerging European Markets
Intelligent Transport Systems as a Tool for Sustainable Road Safety Management: Economic Assessment for Emerging European Markets

Summary/Abstract: Research background: Road traffic crashes represent one of the most critical public health and economic challenges in emerging European markets. Despite significant progress in Western Europe, countries in Central and Eastern Europe, including Ukraine, continue to register road fatality rates two to three times higher than EU averages, generating annual socio-economic losses equivalent to 2–4% of GDP. Intelligent transport systems (ITS) have emerged as an evidence-based mechanism for addressing the structural drivers of road insecurity; however, the literature on their economic justification in resource-constrained transitional economies remains underdeveloped. Purpose of the article: This article examines ITS as a strategic management tool for sustainable road safety improvement in emerging European markets. The study synthesises comparative evidence from the EU, Singapore, Japan, and the United States; constructs a cost-benefit framework adapted to conditions typical of post-Soviet economies; and applies this framework to a pilot scenario on the Ukrainian national highway M-06. Methods: The research employs a multi-method approach combining systematic literature analysis, comparative case study methodology, and quantitative cost-benefit analysis (CBA). Road fatality and injury statistics are drawn from official national databases and international indices (ETSC PIN, WHO Global Status Report, ITF Road Safety Annual Report). ITS component cost parameters are sourced from European deployment projects. The value of a statistical life (VSL) is derived from harmonised European methodologies for the Ukrainian income context, with an income-elasticity adjustment. Findings & Value added: Results confirm that ITS deployment reduces road fatalities by 15–50%, depending on technology type and context. For the M-06 pilot scenario (75 km, investment of EUR 750,000), the benefit-cost ratio is 9.4:1, the net present value over 10 years exceeds EUR 14.1 million, and the payback period is approximately 4 months. The article contributes a replicable CBA model adapted for emerging European markets, where VSL and investment capacity differ substantially from Western benchmarks, providing actionable guidance for transport ministries, municipal authorities, and international co-financing bodies.

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