Fuel Economy and Safety: The Influences of Vehicle Class and Driver Behavior

Mark R. Jacobsen

American Economic Journal: Applied Economics, 2013, vol. 5, issue 3, 1-26

Abstract: Fuel economy standards change the composition of the vehicle fleet, influencing accident safety. The direction and size of the effect depend on the combination of vehicles in the fleet. I provide empirical estimates of vehicle safety across classes, accounting for unobserved driving behavior and selection. I apply the model to the present structure of US fuel economy standards, accounting for shifts in the composition of vehicle ownership, and estimate an adverse safety effect of 33 cents per gallon of gasoline saved. I show how two alternative regulatory provisions fully offset this effect, producing a nearzero change in accident fatalities.

JEL-codes: D12 L51 L62 Q48 R41 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/app.5.3.1
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Citations: View citations in EconPapers (34)

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