IDEAS home Printed from https://ideas.repec.org/p/ete/etewps/ete0407.html
   My bibliography  Save this paper

Traffic safety: speed limits, strict liability and a km tax

Author

Listed:
  • Eef Delhaye

    () (K.U.Leuven-Center for Economic Studies)

Abstract

Policy makers can improve traffic safety by the use of different instruments. These instruments include regulation (e.g. speed limits, vehicle standards, etc.), enforcement of regulation, liability rules, physical measures (e.g. roundabouts, speed humps, etc.), economic instruments (pricing of transport, insurance pricing), education and sensitisation. In this paper we focus on two specific determinants of accidents: speed and the number of kilometres people drive. If there is no government intervention, people do not take into account the full cost of their driving and they will drive too fast and too much. In our setting, the government can use three instruments to influence the behaviour of people: speed limits, strict liability and a kilometre tax. We set up a theoretical model of traffic accidents to analyse the choice of the speed level and the number of kilometres under the different instruments and determine the optimal combinations. Given our assumptions we never reach the social optimum. To illustrate our results we discuss a numerical example.

Suggested Citation

  • Eef Delhaye, 2004. "Traffic safety: speed limits, strict liability and a km tax," Energy, Transport and Environment Working Papers Series ete0407, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
  • Handle: RePEc:ete:etewps:ete0407
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/119356/1/ETE-WP-2004-07.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Peirson, John & Skinner, Ian & Vickerman, Roger, 1998. "The Microeconomic Analysis of the External Costs of Road Accidents," Economica, London School of Economics and Political Science, vol. 65(259), pages 429-440, August.
    2. Schmitz, Patrick W., 2000. "On the joint use of liability and safety regulation," International Review of Law and Economics, Elsevier, vol. 20(3), pages 371-382, September.
    3. Shavell, Steven, 1991. "Specific versus General Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1088-1108, October.
    4. Burrows, Paul, 1999. "Combining regulation and legal liability for the control of external costs," International Review of Law and Economics, Elsevier, vol. 19(2), pages 227-244, June.
    5. Steven Shavell, 1983. "Liability for Harm Versus Regulation of Safety," NBER Working Papers 1218, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Delhaye, E., 2006. "Traffic safety: Speed limits, strict liability and a km tax," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(3), pages 205-226, March.

    More about this item

    Keywords

    transport; law and economic; liability; regulation; accidents;

    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:ete:etewps:ete0407. 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: (library EBIB). General contact details of provider: http://edirc.repec.org/data/etkulbe.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 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.

    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.