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Gasoline Prices and Traffic Safety in Mississippi

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Abstract

Problem - Limited literature suggests that gasoline prices have substantial effects on reducing fatal crashes. However, the literature focuses only on fatal crashes and does not examine the effects on all traffic crashes. Methods - Mississippi traffic crash data from April 2004–December 2008 from the Mississippi Highway Patrol and regular-grade unleaded gasoline price data from the Energy Information Administration of the U.S. Department of Energy were used to investigate the effects of gasoline prices on traffic safety by age, gender, and race. Results - Gasoline prices have both short-term and intermediate-term effects on reducing total traffic crashes and crashes of females, whites, and blacks. The intermediate-term effects are generally stronger than the short-term effects. Gasoline prices also have short-term effects on reducing crashes of younger drivers and intermediate-term effects on older drivers and male drivers. Impact on Industry - Higher gasoline taxes reduce traffic crashes and may result in additional societal benefits.

Suggested Citation

  • Guangqing Chi & Arthur Cosby & Paul Gilbert & David Levinson, 2009. "Gasoline Prices and Traffic Safety in Mississippi," Working Papers 201007, University of Minnesota: Nexus Research Group.
  • Handle: RePEc:nex:wpaper:gaspricesandtrafficsafety
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    File URL: http://hdl.handle.net/11299/180001
    File Function: First version, 2009
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    Keywords

    gasoline prices; traffic incidents; traffic safety; age; gender;

    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
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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