Open Access Journal Article

Confrontation between shareholders and local residents over safety investments in high-risk industries

by Nicolas Piluso a,* orcid
a
IUT GEA Ponsan, Paul Sabatier University, Toulouse, France
*
Author to whom correspondence should be addressed.
EAL  2023, 32; 2(3), 32; https://doi.org/10.58567/eal02030007
Received: 31 May 2023 / Accepted: 17 June 2023 / Published Online: 5 July 2023
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Abstract

The aim of this article is to model a negotiation between shareholders in high-technology-risk industries and local residents on the safety investments to be implemented. The methodology used is a Nash bargaining model, with a DE curve representing shareholders' dividend demands and an NS curve representing the safety demands of local residents' associations. The model is used to determine the level of safety investment required. One of the main results is that the estimation of a higher accident risk is accompanied by both a higher safety investment and a higher dividend payout. The most obvious implication of this result is that it is undoubtedly necessary to give greater weight to local residents in investment decision-making, in order to improve the well-being of all stakeholders.

Keywords: Consultation; high-risk industries; safety investments; accident probability;
Copyright: © 2023 by Piluso. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Piluso, N. Confrontation between shareholders and local residents over safety investments in high-risk industries. Economic Analysis Letters, 2023, 2, 32. https://doi.org/10.58567/eal02030007
AMA Style
Piluso N. Confrontation between shareholders and local residents over safety investments in high-risk industries. Economic Analysis Letters; 2023, 2(3):32. https://doi.org/10.58567/eal02030007
Chicago/Turabian Style
Piluso, Nicolas 2023. "Confrontation between shareholders and local residents over safety investments in high-risk industries" Economic Analysis Letters 2, no.3:32. https://doi.org/10.58567/eal02030007
APA style
Piluso, N. (2023). Confrontation between shareholders and local residents over safety investments in high-risk industries. Economic Analysis Letters, 2(3), 32. https://doi.org/10.58567/eal02030007

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