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Hidden figures behind two-vehicle crashes: An assessment of the risk and external costs of drunk driving in Spain

Author

Listed:
  • David Mesa-Ruiz

    (U. Pablo de Olavide)

  • Yolanda Rebollo-Sanz

    (U. Pablo de Olavide)

  • Jesús Rodríguez-López

    (U. Pablo de Olavide)

Abstract

This paper presents an assessment of the external cost of drunk driving in Spain between 2004-2015. Eventually we arrive at the following conclusions. Firstly, we find the relative risk of drunk drivers causing a crash during the night (20:00 p.m. to 5:00 a.m.) to be between 2.7 to 3.9 times higher than that of sober drivers. Secondly, we provide evidence that the relative number of drunk drivers versus sober drivers declined during nighttime hours after the implementation of the Penalty Points System for driving licenses in Spain on July 1st 2006. Thirdly, using logistic and count model regressions, we confirm hourly heterogeneity in the pattern of drunk driving, and estimate elasticities of fatal crashes with respect to drunk driving, which range between 0.5 and 0.7. When estimating the decline in fatalities after the Penalty Points System, our approach does a good job in capturing the change in fatalities during nighttime hours that can be accounted for by drunk driving. Finally, our assessment indicates a downturn in the external costs of drunk driving over the last decade in Spain. In addition, we estimate that the fine for drunk driving should be set at 1250€, in order to offset its external costs. Overall, our results point to a decline in drunk driving offences alongside an increase in its punition.

Suggested Citation

  • David Mesa-Ruiz & Yolanda Rebollo-Sanz & Jesús Rodríguez-López, 2018. "Hidden figures behind two-vehicle crashes: An assessment of the risk and external costs of drunk driving in Spain," Working Papers 18.07, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:18.07
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    References listed on IDEAS

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    1. West, Sara E. & Parry, Ian W.H., 2009. "Alcohol-Leisure Complementarity: Empirical Estimates and Implications for Tax Policy," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(4), pages 611-633, December.
    2. Ian W. H. Parry & Margaret Walls & Winston Harrington, 2007. "Automobile Externalities and Policies," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 373-399, June.
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    More about this item

    Keywords

    Road accidents; drunk driving; relative risk; multinomial probability; negative binomial; external costs.;
    All these keywords.

    JEL classification:

    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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