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

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  • Benedettini, Simona
  • Nicita, Antonio

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.

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  • Benedettini, Simona & Nicita, Antonio, 2012. "The costs of avoiding accidents: Selective compliance and the ‘Peltzman effect’ in Italy," International Review of Law and Economics, Elsevier, vol. 32(2), pages 256-270.
    • Handle: RePEc:eee:irlaec:v:32:y:2012:i:2:p:256-270
    DOI: 10.1016/j.irle.2012.02.001
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    5. Basili, Marcello & Belloc, Filippo, 2021. "The deterrent effect of “Vehicular Homicide Laws”: Microeconometric evidence from Italy," Research in Transportation Economics, Elsevier, vol. 90(C).
    6. Liang, Yuanning, 2020. "Do Safety Inspections Improve Safety? Evidence from the Safety Inspection Program for Commercial Motor Vehicles," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304312, Agricultural and Applied Economics Association.
    7. Asmussen, Katherine E. & Mondal, Aupal & Bhat, Chandra R., 2022. "Adoption of partially automated vehicle technology features and impacts on vehicle miles of travel (VMT)," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 156-179.
    8. Shahram Heydari & Adrian Hickford & Rich McIlroy & Jeff Turner & Abdulgafoor M. Bachani, 2019. "Road Safety in Low-Income Countries: State of Knowledge and Future Directions," Sustainability, MDPI, vol. 11(22), pages 1-29, November.

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    More about this item

    Keywords

    Offsetting behavior; Point-record driving license; Seat belts; Traffic law enforcement; Traffic fatalities;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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