Impact of Pay-at-the-Pump on Safety Through Enhanced Vehicle Fuel Efficiency

Daniel J. Khazzoom

The Energy Journal, 1997, vol. 18, issue 3, 103-133

Abstract: Pay-at-the-Pump (PATP) is a proposal for replacing the lump-sum payment of auto insurance by a system of surcharge on gasoline price. This study examines the main argument made against PATP-namely, that by stimulating the demand for fuel-efficient vehicles, PATP results in a drastic deterioration in highway safety. The study finds the evidence does not support this argument. Moreover, if as critics argue, PATP does indeed result in a substantially accelerated replacement of older vehicles with more fuel-efficient ones, the introduction of PATP may be expected to result in a substantially safer fleet of vehicles, as well.

Keywords: Traffic accidents; pay-at -the-pump (PATP); vehicle safety; insurance reform; gasoline prices; CAFÉ (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:18:y:1997:i:3:p:103-133

DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No3-5

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