American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Fuel Economy and Safety: The Influences of Vehicle Class and Driver Behavior
American Economic Journal: Applied Economics
vol. 5,
no. 3, July 2013
(pp. 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.Citation
Jacobsen, Mark R. 2013. "Fuel Economy and Safety: The Influences of Vehicle Class and Driver Behavior." American Economic Journal: Applied Economics 5 (3): 1–26. DOI: 10.1257/app.5.3.1Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- L51 Economics of Regulation
- L62 Automobiles; Other Transportation Equipment
- Q48 Energy: Government Policy
- R41 Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise