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Gasoline prices and motor vehicle fatalities

Author

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  • David C. Grabowski

    (Department of Health Care Organization and Policy, Lister Hill Center for Health Policy, University of Alabama, Birmingham)

  • Michael A. Morrisey

    (Department of Health Care Organization and Policy, Lister Hill Center for Health Policy, University of Alabama, Birmingham)

Abstract

Fatal motor vehicle crashes per capita remained relatively stable over the 1990s, in spite of new traffic safety laws and vehicle innovations. One explanation for this stability is that the price of gasoline declined, which resulted in more vehicle miles traveled and potentially more fatalities. By using 1983-2000 monthly gasoline price and fatality panel data and fixed effects specifications, this study exploits within-state variation over time in gasoline prices and found that a 10-cent decrease in gasoline prices increased motor vehicle fatalities by 2.3 percent over a 2-year period. The effect on higher-risk younger adults is more than twice as large. The secular decline in real gasoline prices over the 1990s may partially explain why motor vehicle fatalities per capita have not decreased even with the adoption of more stringent state policies. © 2004 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • David C. Grabowski & Michael A. Morrisey, 2004. "Gasoline prices and motor vehicle fatalities," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 575-593.
  • Handle: RePEc:wly:jpamgt:v:23:y:2004:i:3:p:575-593
    DOI: 10.1002/pam.20028
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    References listed on IDEAS

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    1. Ruhm, Christopher J., 1996. "Alcohol policies and highway vehicle fatalities," Journal of Health Economics, Elsevier, vol. 15(4), pages 435-454, August.
    2. Carol A. Dahl, 1986. "Gasoline Demand Survey," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 67-82.
    3. Lave, Charles & Elias, Patrick, 1997. "Resource Allocation in Public Policy: The Effects of the 65-MPH Speed Limit," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 614-620, July.
    4. Brent D. Mast & Bruce L. Benson & David W. Rasmussen, 1999. "Beer Taxation and Alcohol-Related Traffic Fatalities," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 214-249, October.
    5. Thomas S Dee, 2001. "Does setting limits save lives? The case of 0.08 BAC laws," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 111-128.
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    Citations

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    Cited by:

    1. Daniel Albalate, 2008. "Lowering blood alcohol content levels to save lives: The European experience," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(1), pages 20-39.
    2. Gaudry, Marc & de Lapparent, Matthieu, 2013. "Part 2. Beyond single-outcome models: Decompositions of aggregate and disaggregate road safety risk," Research in Transportation Economics, Elsevier, vol. 37(1), pages 20-37.
    3. He, Monica M., 2016. "Driving through the Great Recession: Why does motor vehicle fatality decrease when the economy slows down?," Social Science & Medicine, Elsevier, vol. 155(C), pages 1-11.
    4. Paul J. Burke & Shuhei Nishitateno, 2015. "Gasoline Prices And Road Fatalities: International Evidence," Economic Inquiry, Western Economic Association International, vol. 53(3), pages 1437-1450, July.
    5. Guangqing Chi & Jeremy Porter & Arthur Cosby & David Levinson, 2009. "The Impact of Gasoline Price Changes on Traffic Safety: a Time Geography Explanation," Working Papers 000092, University of Minnesota: Nexus Research Group.
    6. Kwon, Youngsun & Han, Seung Hun & Nam, Changi, 2012. "Estimating the costs of political populism: Traffic violation pardons in Korea," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1449-1457.
    7. Oster, Clinton V. & Strong, John S., 2013. "Analyzing road safety in the United States," Research in Transportation Economics, Elsevier, vol. 43(1), pages 98-111.
    8. Grabowski, David C. & Morrisey, Michael A., 2006. "Do higher gasoline taxes save lives?," Economics Letters, Elsevier, vol. 90(1), pages 51-55, January.
    9. repec:dau:papers:123456789/7024 is not listed on IDEAS
    10. Nicholas E. Burger & Daniel T. Kaffine & Bo Yu, 2013. "Did California's hand-held cell phone ban reduce accidents?," Working Papers 2013-08, Colorado School of Mines, Division of Economics and Business.
    11. Bisakha Sen & Christine M. Campbell, 2010. "Alcohol Prevalence, Alcohol Policies, And Child Fatal Injury Rates From Motor Vehicle Crashes," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 392-405, July.
    12. Sen, Bisakha, 2011. "Is There An Association Between Gasoline Prices & Physical Activity?Evidence from American Time Use Data," MPRA Paper 31229, University Library of Munich, Germany.
    13. Sherzod Yarmukhamedov, 2017. "Determinants of Traffic Fatalities in Sweden," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(2), pages 1-1.
    14. Gaudry, Marc & Himouri, Slimane, 2013. "DRAG-ALZ-1, a first model of monthly total road demand, accident frequency, severity and victims by category, and of mean speed on highways, Algeria 1970–2007," Research in Transportation Economics, Elsevier, vol. 37(1), pages 66-78.
    15. Steven D. Levitt, 2008. "Evidence that Seat Belts Are as Effective as Child Safety Seats in Preventing Death for Children Aged Two and Up," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 158-163, February.
    16. Corsaro, Nicholas & Gerard, Daniel W. & Engel, Robin S. & Eck, John E., 2012. "Not by accident: An analytical approach to traffic crash harm reduction," Journal of Criminal Justice, Elsevier, vol. 40(6), pages 502-514.
    17. England, Richard W., 2007. "Motor fuel taxation, energy conservation, and economic development: A regional approach," Ecological Economics, Elsevier, vol. 61(2-3), pages 409-416, March.

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