Assessment of the Socio-Economic Damage from Road Traffic Accidents Based on an Inter-Sectoral Damage Redistribution Matrix

This research focuses on the challenge of measuring the socio-economic impact of road traffic accidents (RTAs) by examining how losses are redistributed across major institutional sectors, including the government, businesses, and households. Unlike traditional cost-based approaches, the analysis relies on a modified input–output framework that captures not only the direct losses but also the indirect damage flows transmitted from one sector to another. This methodology makes it possible to reveal the multiplicative propagation of losses, determine the proportion of net costs, and quantify the transfer dependencies between institutional agents. Using compiled and adapted data for the Azerbaijani economy, the study estimates the net economic damage from RTAs at 2268.17 million manats after adjusting for internal transfers. The results show that households bear more than 47% of total losses, the enterprise sector accounts for approximately 39%, and the government absorbs nearly 13%. The model also isolates an “additional damage” component, reflecting lost income, profits, and tax revenues, and demonstrates that every 1000 RTA generates a chain reaction of interlinked costs that substantially amplifies the overall effect. The findings highlight the necessity of integrating input–output analytical approaches into the practical assessment of RTA-related economic consequences, particularly in countries with limited statistical capacity and structurally diverse institutional linkages.