ARE GREEN CAR DRIVERS FRIENDLY DRIVERS? A STUDY OF TAIWAN'S AUTOMOBILE INSURANCE MARKET

Jerry S. Huang and Kili C. Wang

Journal of Risk & Insurance, 2019, vol. 86, issue 1, 103-119

Abstract: By integrating claims data from Taiwan's compulsory liability insurance with a unique data set on driving mileage records for each car, this article examines whether green car drivers have lower accident risk. We find that after controlling for the mileage driven per car, the traffic accident risk of green car drivers is significantly lower. Our empirical evidence also confirms that green car drivers are, on average, high‐mileage drivers. Moreover, driving more results in a higher accident probability for green car drivers despite their being lower‐risk drivers. The policy implications are discussed.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jrinsu:v:86:y:2019:i:1:p:103-119

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