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Pounds that Kill: The External Costs of Vehicle Weight

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  • Michael Anderson
  • Maximilian Auffhammer

Abstract

Heavier vehicles are safer for their own occupants but more hazardous for the occupants of other vehicles. In this paper we estimate the increased probability of fatalities from being hit by a heavier vehicle in a collision. We show that, controlling for own-vehicle weight, being hit by a vehicle that is 1,000 pounds heavier results in a 47% increase in the baseline fatality probability. Estimation results further suggest that the fatality risk is even higher if the striking vehicle is a light truck (SUV, pickup truck, or minivan). We calculate that the value of the external risk generated by the gain in fleet weight since 1989 is approximately 27 cents per gallon of gasoline. We further calculate that the total fatality externality is roughly equivalent to a gas tax of $1.08 per gallon. We consider two policy options for internalizing this external cost: a gas tax and an optimal weight varying mileage tax. Comparing these options, we find that the cost is similar for most vehicles.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17170.

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Date of creation: Jun 2011
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Publication status: published as “Pounds Th at Kill: Th e External Costs of Vehicle Weight.” Joint with Max Au ff hammer, UC Berkeley. 2014. Review of Economic Studies . 81(2): pp. 535-571.
Handle: RePEc:nbr:nberwo:17170

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Cited by:
  1. Mark R. Jacobsen, 2012. "Fuel Economy and Safety: The Influences of Vehicle Class and Driver Behavior," NBER Working Papers 18012, National Bureau of Economic Research, Inc.
  2. Van Ommeren, Jos & Rietveld, Piet & Zagha Hop, Jack & Sabir, Muhammad, 2013. "Killing kilos in car accidents: Are external costs of car weight internalised?," Economics of Transportation, Elsevier, vol. 2(2), pages 86-93.
  3. Christopher R. Knittel & Ryan Sandler, 2013. "The Welfare Impact of Indirect Pigouvian Taxation: Evidence from Transportation," NBER Working Papers 18849, National Bureau of Economic Research, Inc.

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