CASE STUDY: WHO PAYS THE PRICE?

Please review the following case study, and then answer the questions provided at the end.

Transportation Safety December 18, 2017, is set as the implementation day for electronic logging devices (ELDs) in trucks. ELDs will replace paper logbooks for truck drivers to provide a better control over their compliance with Hours of Service regulations that are designed to combat driver fatigue. It is believed that paper logbooks are subject to fraud and allow drivers to exceed 11 hours of driving per day and more than 60 hours in a seven day period (cycle). On the other hand, drivers will not be easily exceed the limits as ELDs are not easily manipulated. The cost of ELD purchase, installation, and operation is the responsibility of the trucking company or the independent truck driver.

ELD critics believe that, at a cost of $2,500.00 per unit, the expense of ELD adoption is excessive for smaller companies and independent truckers. They also project productivity decreases of 15% fewer miles travelled per day and nominal rate increases of 5-10 per cent for loads booked on the spot market. Proponents indicate that ELDs will improve the accuracy of HOS logs, improve HOS compliance, reduce falsification that occurs with paper logbooks, and reduce crashes over 1,800 annually.

Transportation Security After the terrorist attack on the United States on September 11^th, 2001, the Transportation Security Administration (TSA) was established and tasked with implementing regulations to protect the safety of passengers using the USA airline industry. TSA manages Secure Flight, a risk based pre-screening program to identify high-risk passengers; conducts passenger screening for illegal items before they enter the secure area of airports; and screens checked bags for explosives and other dangerous items. The TSA has implemented congressionally mandated security fees to help finance the increased cost of securing the nations aviation transportation system. The passenger paid fee was increased to $11.20 per round trip ticket in 2014.

Critics of TSA screening programs complain that these policies increase travel time, invade privacy, are of limited effectiveness, and increase costs for passengers and airlines. Proponents of these policies argue that the safety of air passengers is more important than delays or increased costs.

CASE STUDY QUESTIONS:

1. For the given environmental regulation examples in this case, there are both pros, as well as cons in regards to government intervention. On one hand is the public benefit, the other is on the challenges and costs as it relates to private industry. How would you decide which view to accept?
2. Using the provided examples, identify benefits vs costs for BOTH viewpoints. What other considerations should be addressed?
3. Should gov. and global organizations (like IMO) be the primary drivers of transportation environmental regulations; Or, do you believe private industry needs to take a greater stance in regards to environmental protection?