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The Accident Externality from Trucking

Author

Listed:
  • Lucija Muehlenbachs
  • Stefan Staubli
  • Ziyan Chu

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

  • Lucija Muehlenbachs & Stefan Staubli & Ziyan Chu, 2017. "The Accident Externality from Trucking," NBER Working Papers 23791, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23791
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    References listed on IDEAS

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    1. Aaron S. Edlin & Pinar Karaca-Mandic, 2006. "The Accident Externality from Driving," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 931-955, October.
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    Cited by:

    1. Shirlee Lichtman-Sadot, 2017. "Can Public Transportation Reduce Accidents? Evidence From The Introduction Of Late-Night Buses In Israeli Cities," Working Papers 1715, Ben-Gurion University of the Negev, Department of Economics.

    More about this item

    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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