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Fuel Economy, Car Class Mix, and Safety

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  • Mark R. Jacobsen

Abstract

Fuel economy standards change the composition of the vehicle fleet, potentially influencing accident fatality risks. I estimate the direction and magnitude of this impact, introducing a correction for selection on driver behavior. A policy application using my new estimates shows that the present distinction between light trucks and cars in fuel economy rules has very negative consequences for overall safety: Each MPG increment to the standard results in an additional 150 fatalities per year in expectation. My correction for selection is pivotal in this finding. I then demonstrate a simple alternative regulation that can produce near-zero changes in accident fatalities.

Suggested Citation

  • Mark R. Jacobsen, 2011. "Fuel Economy, Car Class Mix, and Safety," American Economic Review, American Economic Association, vol. 101(3), pages 105-109, May.
    • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:105-09
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.105
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    Citations

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    Cited by:

    1. Waldemar Marz, 2019. "Complex dimensions of climate policy: the role of political economy, capital markets, and urban form," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 85.
    2. Sebastian Martinez & Raul Sanchez & Patricia Yañez-Pagans, 2019. "Road safety: challenges and opportunities in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-30, December.
    3. Marz, Waldemar & Goetzke, Frank, 2022. "CAFE in the city — A spatial analysis of fuel economy standards," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    4. Brands, Devi & Klingen, Joris & Ostermeijer, Francis, 2022. "Hands on the wheel, eyes on the phone: The effect of smartphone usage fees on road safety," European Economic Review, Elsevier, vol. 146(C).
    5. Lutsey, Nicholas, 2012. "Regulatory and technology lead-time: The case of US automobile greenhouse gas emission standards," Transport Policy, Elsevier, vol. 21(C), pages 179-190.
    6. Ullman, Darin F., 2016. "A difficult road ahead: Fleet fuel economy, footprint-based CAFE compliance, and manufacturer incentives," Energy Economics, Elsevier, vol. 57(C), pages 94-105.
    7. Kyle Kinler & Jeffrey Wagner, 2014. "Greenness versus safety in vehicle footprint selection," Letters in Spatial and Resource Sciences, Springer, vol. 7(1), pages 35-45, March.
    8. Devi Brands & Joris Klingen & Francis Ostermeijer, 2020. "Hands on the Wheel, Eyes on the Phone: the Effect of Smart Phone Usage on Road Safety," Tinbergen Institute Discussion Papers 20-024/VIII, Tinbergen Institute.

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