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Points To Save Lives: The Effects of Traffic Enforcement Policies on Road Fatalities

Author

Listed:
  • Almunia, Miguel

    (University of Warwick)

  • Gaete, Gonzalo

    (University of Warwick)

Abstract

Traffic accidents cause more than one million annual deaths worldwide and yield substantial economic costs to society. This paper studies the effects of a penalty points system (PPS) introduced in Spain in 2006. We find a 20% decrease in cumulative road fatalities in the five years after the reform, compared to a synthetic control group constructed using a weighted average of other European countries. Using estimates of the value of a statistical life, we calculate that the PPS yielded a net economic benefit of €4.6 billion ($6 billion) over this period, equivalent to 0.43% of Spain’s GDP.

Suggested Citation

  • Almunia, Miguel & Gaete, Gonzalo, 2017. "Points To Save Lives: The Effects of Traffic Enforcement Policies on Road Fatalities," CAGE Online Working Paper Series 348, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:348
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/348-2017_almunia_gaete.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    road fatalities; traffic enforcement; penalty points system (PPS); synthetic control; Spain. JEL Classification: I18; R41; K32.;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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