IDEAS home Printed from https://ideas.repec.org/a/eee/ecotra/v34y2023ics2212012223000114.html
   My bibliography  Save this article

Do increased speeding fines save lives?

Author

Listed:
  • Fry, Jane M.

Abstract

On 24 April 2017, fines for the most serious speeding offences increased from 100% to 150% of relevant weekly income in England and Wales. In this paper we establish whether this policy saved lives. Using data on all road accidents reported to police we evaluate the effects of this increased financial penalty using a two-year bandwidth and applying Regression Discontinuity in Time and Difference-in-Difference methods. Overall, we find no evidence of reduced serious or fatal accidents following the policy, indicating most drivers are not significantly changing their risky behaviours when confronted with higher penalties. There is, however, some evidence of fewer accidents in more economically advantaged areas. This suggests that drivers are responding to the amount of the fine increase rather than the income share and wealthier drivers are therefore more affected.

Suggested Citation

  • Fry, Jane M., 2023. "Do increased speeding fines save lives?," Economics of Transportation, Elsevier, vol. 34(C).
  • Handle: RePEc:eee:ecotra:v:34:y:2023:i:c:s2212012223000114
    DOI: 10.1016/j.ecotra.2023.100311
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212012223000114
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecotra.2023.100311?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruno Ferman & Cristine Pinto, 2019. "Inference in Differences-in-Differences with Few Treated Groups and Heteroskedasticity," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 452-467, July.
    2. Catherine Hausman & David S. Rapson, 2018. "Regression Discontinuity in Time: Considerations for Empirical Applications," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 533-552, October.
    3. Traxler, Christian & Westermaier, Franz G. & Wohlschlegel, Ansgar, 2018. "Bunching on the Autobahn? Speeding responses to a ‘notched’ penalty scheme," Journal of Public Economics, Elsevier, vol. 157(C), pages 78-94.
    4. Benjamin Hansen, 2015. "Punishment and Deterrence: Evidence from Drunk Driving," American Economic Review, American Economic Association, vol. 105(4), pages 1581-1617, April.
    5. Justin Gallagher & Paul J. Fisher, 2020. "Criminal Deterrence When There Are Offsetting Risks: Traffic Cameras, Vehicular Accidents, and Public Safety," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 202-237, August.
    6. Markus Gehrsitz, 2017. "Speeding, Punishment, and Recidivism: Evidence from a Regression Discontinuity Design," Journal of Law and Economics, University of Chicago Press, vol. 60(3), pages 497-528.
    7. Bourgeon, Jean-Marc & Picard, Pierre, 2007. "Point-record driving licence and road safety: An economic approach," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 235-258, February.
    8. Ferdinand, A.O. & Menachemi, N. & Sen, B. & Blackburn, J.L. & Morrisey, M. & Nelson, L., 2014. "Impact of texting laws on motor vehicular fatalities in the united states," American Journal of Public Health, American Public Health Association, vol. 104(8), pages 1370-1377.
    9. Stefano Castriota & Mirco Tonin, 2019. "Stay or Flee? Probability versus Severity of Punishment in Hit-and-run Accidents," BEMPS - Bozen Economics & Management Paper Series BEMPS65, Faculty of Economics and Management at the Free University of Bozen.
    10. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    11. Gregory DeAngelo & Benjamin Hansen, 2014. "Life and Death in the Fast Lane: Police Enforcement and Traffic Fatalities," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 231-257, May.
    12. Marco Francesconi & Jonathan James, 2022. "Alcohol Price Floors and Externalities: The Case of Fatal Road Crashes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(4), pages 1118-1156, September.
    13. Bar-Ilan, Avner & Sacerdote, Bruce, 2004. "The Response of Criminals and Noncriminals to Fines," Journal of Law and Economics, University of Chicago Press, vol. 47(1), pages 1-17, April.
    14. Gehrsitz, Markus, 2017. "Speeding, Punishment, and Recidivism: Evidence from a Regression Discontinuity Design," IZA Discussion Papers 10707, Institute of Labor Economics (IZA).
    15. Benjamin Cooper & Markus Gehrsitz & Stuart G. McIntyre, 2020. "Drink, death, and driving: Do blood alcohol content limit reductions improve road safety?," Health Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 841-847, July.
    16. Rahi Abouk & Scott Adams, 2013. "Texting Bans and Fatal Accidents on Roadways: Do They Work? Or Do Drivers Just React to Announcements of Bans?," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 179-199, April.
    17. Maria De Paola & Vincenzo Scoppa & Mariatiziana Falcone, 2013. "The deterrent effects of the penalty points system for driving offences: a regression discontinuity approach," Empirical Economics, Springer, vol. 45(2), pages 965-985, October.
    18. Anderson, D. Mark & Rees, Daniel I., 2015. "Per se drugged driving laws and traffic fatalities," International Review of Law and Economics, Elsevier, vol. 42(C), pages 122-134.
    19. Leandro Rocco & Breno Sampaio, 2016. "Are handheld cell phone and texting bans really effective in reducing fatalities?," Empirical Economics, Springer, vol. 51(2), pages 853-876, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rebollo-Sanz, Yolanda & Rodríguez-López, Jesús & Rodríguez-Planas, Núria, 2021. "Penalty-point system, deterrence and road safety: A quasi-experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 408-433.
    2. Rinaldo Brau & Marco Nieddu & S. Balia, 2021. "Depowering Risk: Vehicle Power Restriction and Teen Driver Accidents in Italy," Working Paper CRENoS 202101, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. Traxler, Christian & Westermaier, Franz G. & Wohlschlegel, Ansgar, 2018. "Bunching on the Autobahn? Speeding responses to a ‘notched’ penalty scheme," Journal of Public Economics, Elsevier, vol. 157(C), pages 78-94.
    4. Anand, Vaibhav, 2022. "The Value of Forecast Improvements: Evidence from Advisory Lead Times and Vehicle Crashes," MPRA Paper 114491, University Library of Munich, Germany.
    5. Stefano Castriota & Mirco Tonin, 2019. "Stay or Flee? Probability versus Severity of Punishment in Hit-and-run Accidents," BEMPS - Bozen Economics & Management Paper Series BEMPS65, Faculty of Economics and Management at the Free University of Bozen.
    6. Bauernschuster, Stefan & Rekers, Ramona, 2022. "Speed limit enforcement and road safety," Journal of Public Economics, Elsevier, vol. 210(C).
    7. Yolanda Rebollo-Sanz & Jesús Rodríguez-López & Nùria Rodríguez-Planas, 2018. "Penalty-Point System, Deterrence and Road Safety: An Empirical Approach," Working Papers 18.14, Universidad Pablo de Olavide, Department of Economics.
    8. Aney, Madhav S. & Ho, Christine, 2019. "Deadlier road accidents? Traffic safety regulations and heterogeneous motorists’ behavior," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 155-171.
    9. Kibrom A. Abay, 2018. "How Effective Are Non‐Monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(3), pages 894-924, July.
    10. Jason Bantjes & Sophia du Plessis & Ada Jansen & Krige Siebrits, 2021. "Better enforcement is essential, but may be inadequate: Findings of a survey on the factors affecting payment of speeding fines in Cape Town, South Africa," Working Papers 03/2021, Stellenbosch University, Department of Economics.
    11. Jason Bantjes & Sophia du Plessis & Ada Jansen & Krige Siebrits, 2021. "Better Enforcement Is Essential, but May Be Inadequate: Findings of a Survey on the Factors Affecting Payment of Speeding Fines in Cape Town, South Africa," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    12. Duncan, Kevin Davey, 2020. "Three papers in regional dynamics and panel econometrics," ISU General Staff Papers 202001010800009129, Iowa State University, Department of Economics.
    13. Cheng Keat Tang, 2017. "Do Speed Cameras Save Lives?," SERC Discussion Papers 0221, Centre for Economic Performance, LSE.
    14. Feess, Eberhard & Schildberg-Hörisch, Hannah & Schramm, Markus & Wohlschlegel, Ansgar, 2018. "The impact of fine size and uncertainty on punishment and deterrence: Theory and evidence from the laboratory," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 58-73.
    15. Carl Lieberman & Elizabeth Luh & Michael Mueller-Smith, 2023. "Criminal court fees, earnings, and expenditures: A multi-state RD analysis of survey and administrative data," Working Papers 23-06, Center for Economic Studies, U.S. Census Bureau.
    16. Benjamin Hansen & Keaton Miller & Caroline Weber, 2020. "Early Evidence On Recreational Marijuana Legalization And Traffic Fatalities," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 547-568, April.
    17. Silvia Bruzzone & Stefano Castriota & Mirco Tonin, 2021. "Points Or Prison? The Effects Of Different Sanctions On Driving Behavior," Contemporary Economic Policy, Western Economic Association International, vol. 39(1), pages 126-140, January.
    18. Georges Dionne & Ying Liu, 2021. "Effects of Insurance Incentives on Road Safety: Evidence from a Natural Experiment in China," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 453-477, April.
    19. French, Michael T. & Gumus, Gulcin, 2018. "Watch for motorcycles! The effects of texting and handheld bans on motorcyclist fatalities," Social Science & Medicine, Elsevier, vol. 216(C), pages 81-87.
    20. Anand, Vaibhav, 2001. "The Value of Forecast Improvements: Evidence from Advisory Lead Times and Vehicle Crashes," SocArXiv hdpga, Center for Open Science.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecotra:v:34:y:2023:i:c:s2212012223000114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecotra .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.