IDEAS home Printed from https://ideas.repec.org/p/cns/cnscwp/202101.html
   My bibliography  Save this paper

Depowering Risk: Vehicle Power Restriction and Teen Driver Accidents in Italy

Author

Listed:
  • R. Brau
  • M. G. Nieddu
  • S. Balia

Abstract

This paper investigates how a vehicle power limit on young novice drivers impacts teen traffic accidents in Italy. First introduced in 2011, the reform prevents drivers from using high-performance vehicles during their first license year. We combine rich administrative data on severe accidents over the period 2006-2016 with the driving license census to assess whether undergoing the power limit lowers the likelihood of causing a traffic accident. Our difference- in-difference estimates – we leverage on the between-cohort differences in the exposure to the reform – reveal that the power limit reduces road accidents per capita by about 18%, and accidents per licensee by 13%. The effect is entirely determined by a drop in accidents caused by above-limit vehicles and is primarily driven by fewer speed violations. Moreover, the beneficial impact of the one-year restriction period persists even after its expiration. Our findings highlight the importance of policies that, instead of directly targeting risky behaviours, are aimed at reducing exposure to high-risk settings. In frameworks where deterrence policies and screening mechanisms are hard to implement and maintain, these policies stand out as an effective, yet feasible strategy to increase teen road safety.

Suggested Citation

  • R. Brau & M. G. 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.
  • Handle: RePEc:cns:cnscwp:202101
    as

    Download full text from publisher

    File URL: https://crenos.unica.it/crenos/node/7310
    Download Restriction: no

    File URL: https://crenos.unica.it/crenos/sites/default/files/wp-21-01.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bertoli, Paola & Grembi, Veronica & Vall Castellò, Judit, 2018. "Not all silver lining? The Great Recession and road traffic accidents," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 274-288.
    2. Marcus, Jan & Siedler, Thomas, 2015. "Reducing binge drinking? The effect of a ban on late-night off-premise alcohol sales on alcohol-related hospital stays in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 55-77.
    3. Jenny Williams, 2005. "Habit formation and college students' demand for alcohol," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 119-134, February.
    4. Carpenter, Christopher S. & Stehr, Mark, 2008. "The effects of mandatory seatbelt laws on seatbelt use, motor vehicle fatalities, and crash-related injuries among youths," Journal of Health Economics, Elsevier, vol. 27(3), pages 642-662, May.
    5. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    6. Vikram Maheshri & Clifford Winston, 2016. "Did the Great Recession keep bad drivers off the road?," Journal of Risk and Uncertainty, Springer, vol. 52(3), pages 255-280, June.
    7. Carpenter, Christopher, 2004. "How do Zero Tolerance Drunk Driving Laws work?," Journal of Health Economics, Elsevier, vol. 23(1), pages 61-83, January.
    8. French, Michael T. & Gumus, Gulcin & Homer, Jenny F., 2009. "Public policies and motorcycle safety," Journal of Health Economics, Elsevier, vol. 28(4), pages 831-838, July.
    9. Dee, Thomas S. & Grabowski, David C. & Morrisey, Michael A., 2005. "Graduated driver licensing and teen traffic fatalities," Journal of Health Economics, Elsevier, vol. 24(3), pages 571-589, May.
    10. 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.
    11. Kenkel, Donald S, 1993. "Drinking, Driving, and Deterrence: The Effectiveness and Social Costs of Alternative Policies," Journal of Law and Economics, University of Chicago Press, vol. 36(2), pages 877-913, October.
    12. Alma Cohen & Liran Einav, 2003. "The Effects of Mandatory Seat Belt Laws on Driving Behavior and Traffic Fatalities," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 828-843, November.
    13. W. Kip Viscusi & Joel Huber & Jason Bell, 2011. "Promoting Recycling: Private Values, Social Norms, and Economic Incentives," American Economic Review, American Economic Association, vol. 101(3), pages 65-70, May.
    14. 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.
    15. 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.
    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. 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.
    19. Gilpin, Gregory, 2019. "Teen driver licensure provisions, licensing, and vehicular fatalities," Journal of Health Economics, Elsevier, vol. 66(C), pages 54-70.
    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. 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.
    2. Anderson, D. Mark & Rees, Daniel I., 2012. "Per Se Drugged Driving Laws and Traffic Fatalities," IZA Discussion Papers 7048, Institute of Labor Economics (IZA).
    3. Dills, Angela K., 2010. "Social host liability for minors and underage drunk-driving accidents," Journal of Health Economics, Elsevier, vol. 29(2), pages 241-249, March.
    4. Lauren E. Jones & Nicolas R. Ziebarth, 2017. "U.S. Child Safety Seat Laws: Are they Effective, and Who Complies?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(3), pages 584-607, June.
    5. Anderson, D. Mark & Sandholt, Sina, 2016. "Booster Seats and Traffic Fatalities among Children," IZA Discussion Papers 10071, Institute of Labor Economics (IZA).
    6. D. Mark Anderson & Benjamin Hansen & Daniel I. Rees, 2013. "Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 333-369.
    7. 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.
    8. Magdalena Blanco & José María Cabrera & Felipe Carozzi & Alejandro Cid, 2017. "Effects of Motorcycle Helmet Laws on Fatalities’ Prevention: An Impact Evaluation," Documentos de Trabajo/Working Papers 1706, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    9. Bertoli, Paola & Grembi, Veronica, 2021. "The political cycle of road traffic accidents," Journal of Health Economics, Elsevier, vol. 76(C).
    10. 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.
    11. Almunia, Miguel & Gaete, Gonzalo, 2017. "Points To Save Lives: The Effects of Traffic Enforcement Policies on Road Fatalities," CAGE Online Working Paper Series 348, Competitive Advantage in the Global Economy (CAGE).
    12. Grant, Darren, 2016. "A structural analysis of U.S. drunk driving policy," International Review of Law and Economics, Elsevier, vol. 45(C), pages 14-22.
    13. Erik Nesson & Vinish Shrestha, 2021. "The effects of false identification laws on underage alcohol‐related traffic fatalities," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2264-2283, September.
    14. Christopher S. Carpenter & Carlos Dobkin & Casey Warman, 2016. "The Mechanisms of Alcohol Control," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 328-356.
    15. 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.
    16. Gilpin, Gregory, 2019. "Teen driver licensure provisions, licensing, and vehicular fatalities," Journal of Health Economics, Elsevier, vol. 66(C), pages 54-70.
    17. Cheng Keat Tang, 2017. "Do Speed Cameras Save Lives?," SERC Discussion Papers 0221, Spatial Economics Research Centre, LSE.
    18. Devi Brands & Joris Klingen & Francis Ostermeijer, 2020. "Hands on the Wheel, Eyes on the Phone: the Effect of Smart Phone Usage on Road Safety," Tinbergen Institute Discussion Papers 20-024/VIII, Tinbergen Institute.
    19. D. Mark Anderson & Sina Sandholt, 2019. "Are Booster Seats More Effective than Child Safety Seats or Seat Belts at Reducing Traffic Fatalities among Children?," American Journal of Health Economics, MIT Press, vol. 5(1), pages 42-64, Winter.
    20. Xu, Minhong & Xu, Yilan, 2020. "Fraccidents: The impact of fracking on road traffic deaths," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).

    More about this item

    Keywords

    youth road accidents; risky behaviours; risk exposure; graduated licensing; driving restriction;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cns:cnscwp:202101. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/crenoit.html .

    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: CRENoS (email available below). General contact details of provider: https://edirc.repec.org/data/crenoit.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.