Abstract
The U.S. Consumer Product Safety Commission initiated a formal regulatory proceeding in 1985 to evaluate the hazards associated with all-terrain vehicles (ATVs) and to consider a range of regulatory alternatives. In December 1987, the government and ATV industry filed preliminary consent decrees in U.S. District Court that contained provisions intended to satisfy the Commission's concerns about ATVs. Final consent decrees were approved by the Court in April 1988. This study examines the effectiveness of the consent decrees and concomitant publicity in reducing ATV-related injuries by evaluating changes in driver and market behavior following the consent decrees. Changes in driver behavior are evaluated by comparing the results of risk analyses conducted in the pre- and postconsent decree time periods; the risk analyses are based on logit probability models estimated from cross-section survey data. Changes in market behavior are evaluated by analyzing the impact of the consent decrees on ATV sales patterns. The results suggest that CPSC actions have had a positive impact in reducing ATV injuries.
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