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Can Non-Monetary Sanctions Improve Road Safety? A Policy Impact Assessment of Thailand’s Demerit Point System

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  • Supapong Tunsuparp

    (Faculty of Economics, Ramkhamhaeng University, Thailand)

Abstract

Thailand's road accident rate ranks among the highest globally, causing significant harm to individuals and economic losses. In 2023, the government introduced a demerit point system—a policy with mixed international outcomes. This study evaluates its impact on daily accident rates in Bangkok, analyzing data for all vehicle types, private/public passenger vehicles, and motorcycles. Using interrupted time series analysis, the results show that while the demerit point system did not reverse the upward accident trend, it effectively moderated the rate of increase. Behavioral economic concepts such as present bias, status quo bias, and loss aversion offer additional explanations for the observed behavioral patterns. Statistically significant variables affecting accident frequency include weather conditions and temporal factors such as weekends and festival holidays. These findings suggest that enhancing the system’s effectiveness could involve strategic measures such as increased point deductions during high-risk periods like festivals, along with communication campaigns that emphasize loss-framed messages to discourage risky driving behavior.

Suggested Citation

  • Supapong Tunsuparp, 2025. "Can Non-Monetary Sanctions Improve Road Safety? A Policy Impact Assessment of Thailand’s Demerit Point System," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 32(2), pages 138-150, August.
    • Handle: RePEc:ris:apecjn:021658
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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