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Fuel price effects on motor vehicle collisions: evidence from Greece

Author

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  • Psarras, Andreas
  • Panagiotidis, Theodore
  • Andronikidis, Andreas

Abstract

This study examines the relationship between petrol prices and vehicle collisions using Greek data from 2012 to 2021. Generalized autoregressive conditional heteroscedasticity models are employed for daily motor vehicle collisions. Our analysis reveals that petrol prices have a significant impact on vehicle collisions. Fatal vehicle collisions decrease during relatively high petrol prices, whereas light-injury vehicle collisions increase. No significant relationship was found between severe-injury vehicle collisions and fuel prices. We also analyze daily data on motorcycle vehicle collisions and find a positive relationship between these accidents and fuel prices. When considering models with lagged fuel prices, our results indicate that in all cases, vehicle collisions decrease during periods of increasing fuel prices. These findings suggest that policies targeting motorcycling safety are particularly necessary during times of rising fuel prices.

Suggested Citation

  • Psarras, Andreas & Panagiotidis, Theodore & Andronikidis, Andreas, 2025. "Fuel price effects on motor vehicle collisions: evidence from Greece," LSE Research Online Documents on Economics 129625, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:129625
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    File URL: https://researchonline.lse.ac.uk/id/eprint/129625/
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    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • I19 - Health, Education, and Welfare - - Health - - - Other

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