The costs of avoiding accidents: Selective compliance and the ‘Peltzman effect’ in Italy

Simona Benedettini and Antonio Nicita

International Review of Law and Economics, 2012, vol. 32, issue 2, 256-270

Abstract: We empirically investigate the deterrent and offsetting effects of the introduction of a point-record driving license (PDRL) in Italy. We find that the PDRL resulted in a sharp reduction of seat belt offenses, and in a noticeable decrease of road accidents. However, the reduction in occupant fatalities and injuries was associated with an increase in non-occupant ones, suggesting a remarkable “Peltzman effect”. We then discuss whether a given enforcement design, by inducing drivers to make the best use of safety resources already available to them, may generate more external costs than would otherwise occur.

Keywords: Offsetting behavior; Point-record driving license; Seat belts; Traffic law enforcement; Traffic fatalities (search for similar items in EconPapers)
JEL-codes: D02 K32 K42 L51 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:32:y:2012:i:2:p:256-270

DOI: 10.1016/j.irle.2012.02.001

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