Impact of the energy crisis on traffic accidents

Abstract

Transportation has become an indispensable part of the American civilization, with an average ownership rate of one registered vehicle for every two persons. A negative by-product of this affluence is vehicle accidents, resulting in an annual loss of $20 billion in property damage and injury-related costs. There are other welfare losses not monetized in this estimate, including the psychic aspects of pain and suffering, time delays, and premature death. Recent shortages of gasoline and other fuels have inflicted economic hardships and general nuisances on a large segment of society. Yet, despite an overriding concern with these adversities, there are also favorable aspects of the energy crisis. Reduced speed limits and more cautious driving by an energy-conscious public have contributed to striking declines in the highway death toll. This study analyzes the dynamic trends of highway accidents as affected by energy shortages. State-by-state variations of accident rates are explained in terms of mandatory speed limits, reductions in gasoline sales, the voluntary cooperation of the public in conserving energy, as well as other factors. Economic losses incurred by various accidents are cited, and welfare gains from traffic safety enhancement are estimated at the national level.