The impact of the September 11th security fee and passenger wait time on traffic diversion and highway fatalities

Abstract

This paper investigates the effect of the Security Fee, imposed following September 11, 2001 in the US, and of increased travel delay time, another product of 9/11, on traveler diversion and highway fatalities. Our results are that although both the security fee and the increased travel delay time lead to traffic diversion and increases in highway fatalities, the greater impact is likely to come from travel delays. From a public policy standpoint, this would imply that given various options for public expenditures, monies spent on reducing delays may be more effective than alleviating the security tax burden on passengers.