Analysis of the Chemical Safety Facility Investment Performance in China
Affiliation(s)
Center for Studies of Marine Economy and Sustainable Development, Liaoning Normal University, Dalian, China.
Center for Studies of Marine Economy and Sustainable Development, Liaoning Normal University, Dalian, China.
ABSTRACT
This paper adopts the accident incidence, the gross industry output value, the investment in safety facilities, and per capita wage of employment as the indexes to empirically analyze the investment performance of chemical safety facilities using time series data by VECM in China. The empirical results indicate that for China’s chemical industry, increasing investment fails to improve the short-term safety level significantly because of the offsetting behavior of workers. Over the long term, the offsetting behavior tends to disappear, and the chemical accident incidence can be decreased through increasing investment. Poor safety awareness among workers is one of the causes of accident incidences. The conclusions provide theoretical support for China to perfect chemical industry safety management.
This paper adopts the accident incidence, the gross industry output value, the investment in safety facilities, and per capita wage of employment as the indexes to empirically analyze the investment performance of chemical safety facilities using time series data by VECM in China. The empirical results indicate that for China’s chemical industry, increasing investment fails to improve the short-term safety level significantly because of the offsetting behavior of workers. Over the long term, the offsetting behavior tends to disappear, and the chemical accident incidence can be decreased through increasing investment. Poor safety awareness among workers is one of the causes of accident incidences. The conclusions provide theoretical support for China to perfect chemical industry safety management.
Cite this paper
Sun, K. , Bai, L. and Li, X. (2015) Analysis of the Chemical Safety Facility Investment Performance in China. Advances in Chemical Engineering and Science, 5, 102-109. doi: 10.4236/aces.2015.51011.
Sun, K. , Bai, L. and Li, X. (2015) Analysis of the Chemical Safety Facility Investment Performance in China. Advances in Chemical Engineering and Science, 5, 102-109. doi: 10.4236/aces.2015.51011.
References
[1] Sun, K. and Yang, H.M. (2012) Statistical Analysis of Dangerous Chemical Accidents in China. Fire Technology, 48, 331-341.
http://dx.doi.org/10.1007/s10694-011-0224-y [2] Smith, R.S. (1979) The Impact of OSHA Inspection on Manufacturing Injury Rates. Journal of Human Resource, 14, 145-170. [3] Gray, W.B. and Scholz, J.T. (1993) Does Regulatory Enforcement Work? A Panel Analysis of OSHA Enforcement. Law & Society Review, 27, 177-213.
http://dx.doi.org/10.2307/3053754 [4] Lewis-Beck, M.S. and Alford, J.R. (1980) Can Government Regulate Safety? The Coal Mine Example. The American Political Science Review, 74, 745-756.
http://dx.doi.org/10.2307/1958155 [5] Carmichael, H.L. (1986) Reputations for Safety: Mark Performance and Policy Remedies. Journal of Labor Economics, 4, 458-472.
http://dx.doi.org/10.1086/298106 [6] Weil, D. (1996) If OSHA Is So Bad, Why Is Compliance So Good? The Rand Journal of Economics, 27, 618-640.
http://dx.doi.org/10.2307/2555847 [7] Viscusi, K. (1992) Fatal Tradeoffs: Public and Private Responsibilities for Risk. Oxford University Press, New York, 50-171. [8] Viscusi, K. (1979) The Impact of Occupation Safety and Health Regulation, 1973-1983. Bell Journal of Economics, 10, 117-140.
http://dx.doi.org/10.2307/3003322 [9] Keiser, K.R. (1980) The New Regulation of Health and Safety. Political Science, 95, 479-491.
http://dx.doi.org/10.2307/2150061 [10] Greenberg, E.S. (1985) Capitalism and the American Political Ideal. M. E. Sharpe, Armonk, 76-80. [11] Reniers, G.L.L., et al. (2008) A Multiple Shutdown Method for Managing Evacuation in Case of Major Fire Accidents in Chemical Clusters. Journal of Hazardous Materials, 152, 750-756.
http://dx.doi.org/10.1016/j.jhazmat.2007.07.040 [12] He, G.Z., et al. (2011) Managing Major Chemical Accidents in China: Towards Effective Risk Information. Journal of Hazardous Materials, 187, 171-181.
http://dx.doi.org/10.1016/j.jhazmat.2011.01.017 [13] Zhang, X.M. and Chen, G.H. (2011) Modelin and Algorithm of Domino Effect in Chemical Industrial Parks Using Discrete Isolated Island Method. Safety Science, 49, 463-467.
http://dx.doi.org/10.1016/j.ssci.2010.11.002 [14] Klick, J. and Stratmann, T. (2003) Offsetting Behavior in the Workplace. Working Paper, George Mason University, Feldstein. [15] Feldstein, M. and Stock, J.H. (1994) The Use of a Monetary Aggregate to Target Nominal GDP. Monetary Policy, University of Chicago Press, Chicago, 7-69. [16] Toda, H.Y. and Phillips, P.C.B. (1993) Vector Autoregressions and Causality. Econometrica, 61, 1367-1393.
http://dx.doi.org/10.2307/2951647
[1] Sun, K. and Yang, H.M. (2012) Statistical Analysis of Dangerous Chemical Accidents in China. Fire Technology, 48, 331-341.
http://dx.doi.org/10.1007/s10694-011-0224-y [2] Smith, R.S. (1979) The Impact of OSHA Inspection on Manufacturing Injury Rates. Journal of Human Resource, 14, 145-170. [3] Gray, W.B. and Scholz, J.T. (1993) Does Regulatory Enforcement Work? A Panel Analysis of OSHA Enforcement. Law & Society Review, 27, 177-213.
http://dx.doi.org/10.2307/3053754 [4] Lewis-Beck, M.S. and Alford, J.R. (1980) Can Government Regulate Safety? The Coal Mine Example. The American Political Science Review, 74, 745-756.
http://dx.doi.org/10.2307/1958155 [5] Carmichael, H.L. (1986) Reputations for Safety: Mark Performance and Policy Remedies. Journal of Labor Economics, 4, 458-472.
http://dx.doi.org/10.1086/298106 [6] Weil, D. (1996) If OSHA Is So Bad, Why Is Compliance So Good? The Rand Journal of Economics, 27, 618-640.
http://dx.doi.org/10.2307/2555847 [7] Viscusi, K. (1992) Fatal Tradeoffs: Public and Private Responsibilities for Risk. Oxford University Press, New York, 50-171. [8] Viscusi, K. (1979) The Impact of Occupation Safety and Health Regulation, 1973-1983. Bell Journal of Economics, 10, 117-140.
http://dx.doi.org/10.2307/3003322 [9] Keiser, K.R. (1980) The New Regulation of Health and Safety. Political Science, 95, 479-491.
http://dx.doi.org/10.2307/2150061 [10] Greenberg, E.S. (1985) Capitalism and the American Political Ideal. M. E. Sharpe, Armonk, 76-80. [11] Reniers, G.L.L., et al. (2008) A Multiple Shutdown Method for Managing Evacuation in Case of Major Fire Accidents in Chemical Clusters. Journal of Hazardous Materials, 152, 750-756.
http://dx.doi.org/10.1016/j.jhazmat.2007.07.040 [12] He, G.Z., et al. (2011) Managing Major Chemical Accidents in China: Towards Effective Risk Information. Journal of Hazardous Materials, 187, 171-181.
http://dx.doi.org/10.1016/j.jhazmat.2011.01.017 [13] Zhang, X.M. and Chen, G.H. (2011) Modelin and Algorithm of Domino Effect in Chemical Industrial Parks Using Discrete Isolated Island Method. Safety Science, 49, 463-467.
http://dx.doi.org/10.1016/j.ssci.2010.11.002 [14] Klick, J. and Stratmann, T. (2003) Offsetting Behavior in the Workplace. Working Paper, George Mason University, Feldstein. [15] Feldstein, M. and Stock, J.H. (1994) The Use of a Monetary Aggregate to Target Nominal GDP. Monetary Policy, University of Chicago Press, Chicago, 7-69. [16] Toda, H.Y. and Phillips, P.C.B. (1993) Vector Autoregressions and Causality. Econometrica, 61, 1367-1393.
http://dx.doi.org/10.2307/2951647