Performance Based Codes: Economic Efficiency and Distribution Equity.
Performance Based Codes: Economic Efficiency and
Distribution Equity.
(426 K)
Meeks, C. B.; Brannigan, V. M.
Interscience Communications Ltd.; National Institute of
Standards and Technology; Building Research
Establishment; and Society of Fire Protection Engineers;
Swedish National Testing and Research Institute.
Interflam '96. International Interflam Conference, 7th
Proceedings. March 26-28, 1996, Cambridge, England,
Interscience Communications Ltd., London, England,
Franks, C. A.; Grayson, S., Editor(s)(s), 573-580 pp,
1996.
Sponsor:
National Institute of Standards and Technology,
Gaithersburg, MD
Keywords:
fire safety; codes; decision making; costs; failure;
fire retardant treatments; plywood; risk analysis;
performance based codes
Abstract:
Performance based codes are justified based on their
economic efficiency. Economic efficiency can only be
achieved if decision makers make the optimum trade off
between cost of injuries and injury avoidance
activities. Private decision makers may be tempted to
achieve cost savings by shifting cost to other parties
not involved in the decision process. These
"externalities" represent a significant source of market
failure. Market failures may be addressed by
restructing the marketplace, regulating private
behavior, or public provision of the service itself. All
three of these responses have a place in performance
based codes. Other market failures can exist and
performance based codes must be implemented in a way to
increase, not decrease the efficiency of the market.
Efficiency is not the only social goal. Societies also
concern themselves with the problem of distributional
equity. Distributional equity describes who bears the
burdens of specific social policy choices. Performance
based codes may raise significant distributional equity
problems, especially if the person bearing the burden of
the fire risk is unable to participate in the regulatory
decision process e.g. homeowners. A short case study of
fire retardant treated plywood illustrates the economic
problems involved in inadequate performance based
analysis.
Building and Fire Research Laboratory
National Institute of Standards and Technology
Gaithersburg, MD 20899