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The Accident Externality from Trucking

Author

Listed:
  • Muehlenbachs, Lucija

    (Resources for the Future, Washington DC)

  • Staubli, Stefan

    (University of Calgary)

  • Chu, Ziyan

    (Resources for the Future, Washington DC)

Abstract

The presence of a heavy truck on the road can impose an externality if accidents occur that would not have otherwise. We find each additional truck on the road increases the risk of a truck accident – but also, at an even higher rate, the risk of a car-on-car collision. Our estimates imply two percent of all car-on-car collisions can be attributed to trucks on the road. This negative externality falls on all road users through higher car insurance premiums: one truck, driving for a year in the same zip code, increases the insurance premium of each new enrollee by $0.48/year.

Suggested Citation

  • Muehlenbachs, Lucija & Staubli, Stefan & Chu, Ziyan, 2017. "The Accident Externality from Trucking," IZA Discussion Papers 10989, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10989
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    References listed on IDEAS

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    1. Charles F. Mason & Lucija A. Muehlenbachs & Sheila M. Olmstead, 2015. "The Economics of Shale Gas Development," Annual Review of Resource Economics, Annual Reviews, vol. 7(1), pages 269-289, October.
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    Cited by:

    1. Max Harleman, 2023. "Compensating communities for industrial disamenities: The case of shale gas development," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 10-34, January.
    2. Backstrom, Jesse, 2019. "Strategic Reporting and the Effects of Water Use in Hydraulic Fracturing on Local Groundwater Levels in Texas," Center for Growth and Opportunity at Utah State University 307177, Center for Growth and Opportunity.
    3. Lichtman-Sadot, Shirlee, 2019. "Can public transportation reduce accidents? Evidence from the introduction of late-night buses in Israeli cities," Regional Science and Urban Economics, Elsevier, vol. 74(C), pages 99-117.
    4. Massimo Filippini & Suchita Srinivasan, 2019. "Investments in Worker Health and Labor Productivity: Evidence from Vietnam," CER-ETH Economics working paper series 19/326, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    5. Schulke, Arne & Mai Vi Nguyen, 2023. "The introduction of self-driving / full-automation trucks: Will we live among these modern dinosaurs?," IU Discussion Papers - Transport & Logistics 1 (Januar 2023), IU International University of Applied Sciences.
    6. Nathaly M. Rivera, 2020. "Is Mining an Environmental Disamenity? Evidence from Resource Extraction Site Openings," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 485-528, March.
    7. Nehiba, Cody, 2020. "Taxed to death? Freight truck collision externalities and diesel taxes," Regional Science and Urban Economics, Elsevier, vol. 85(C).

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    More about this item

    Keywords

    externality; trucking; hydraulic fracturing; traffic fatalities;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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