POINTS OR PRISON? THE EFFECTS OF DIFFERENT SANCTIONS ON DRIVING BEHAVIOR

Silvia Bruzzone, Stefano Castriota and Mirco Tonin

Contemporary Economic Policy, 2021, vol. 39, issue 1, 126-140

Abstract: We compare two reforms aimed at reducing road accidents in Italy. The Penalty Points System (PPS) provides drivers with a score and curtails points after infractions. The license is temporarily suspended when points are exhausted. Losing points is easy, but the penalty is mild. The Road Homicide (RH) introduces heavy penalties in the rare event of injuries and/or fatalities. In terms of probability and intensity of the penalty the two policies are therefore diametrically opposed. We find that injuries and fatalities decrease more with PPS than with RH. Comparing costs and benefits, we conclude that strong penalties are not beneficial. (JEL D91, K14, K42, R41)

Date: 2021
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https://doi.org/10.1111/coep.12500

Related works:
Working Paper: Points or Prison? The Effects of Different Sanctions on Driving Behavior (2019)
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