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The Microeconomic Analysis of the External Costs of Road Accidents

  • John Peirson

    ()

  • Ian Skinner
  • Roger Vickerman

    ()

A disaggregated model of the marginal external costs of road accidents imposed by different road users is developed. The model explicitly specifies the adjustment of road users to increases in accident risks imposed by additional road use and is used to estimate marginal external costs of road accidents. The results, under certain assumptions, are up to 50% less than those obtained using the methods of previous studies. However, the adjustment to the increased risks of accidents leads to other costs, such as congestion and reduced pedestrian mobility. These costs should be included in a comprehensive analysis.

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Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 9606.

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Date of creation: Mar 1996
Date of revision:
Publication status: Published in Economica, 1998, 65, pp.429-440
Handle: RePEc:ukc:ukcedp:9606
Contact details of provider: Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 827497
Web page: http://www.kent.ac.uk/economics/

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