Gas prices, beer taxes and GDL programmes: effects on auto fatalities among young adults in the US

Abstract

Efforts to reduce teenage driving fatalities can be categorized as: enhancing driving skills, constraining driving behaviour and limiting the exposure of young drivers to the road. This article uses state-year specific Fatality Analysis Reporting System (FARS) data on the motor vehicle fatalities of young adults aged 15–24 to estimate the effects of gasoline prices, beer taxes and the enactment of Graduated Drivers License (GDL) programmes over the 1985–2006 period. Results indicate that a 10% increase in gasoline prices reduce fatalities by 3.2–6.2%. The largest percentage reductions occurred among 15- to 17-year-old drivers. 10% higher beer taxes were estimated to reduce motor vehicle fatalities among young drivers by approximately 1.3%. In this case, there was virtually no effect on 15- to 17-year-old drivers. Finally, the introduction of more restrictive GDL programmes, those with a 6-month learner's permit phase and subsequent limits on early nighttime driving or on the number of passengers, reduced fatalities among 15- to 17-year-old drivers by 24%. The effects on 18- to 21-year-old drivers were smaller and the weakest GDL programmes had no effect on fatalities.