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Penalty-Point System, Deterrence and Road Safety: An Empirical Approach

Author

Listed:
  • Yolanda Rebollo-Sanz

    (Universidad Pablo de Olavide)

  • Jesús Rodríguez-López

    (Universidad Pablo de Olavide)

  • Nùria Rodríguez-Planas

    (Queens College - CUNY)

Abstract

Using a quasi-experimental approach, we study the causal effect of introducing a penalty-point system (PPS) on drivers, accidents, injuries and fatalities. We find that the PPS decreased the number of traffic offenders by 13.8%. In addition, the deterrence effect was directly related to the size of the point loss. The PPS reform also curbed PPS-related accidents, injuries and fatalities by 14,2%, 15.1% and 16.1%, respectively. These findings are robust to a battery of tests, including a placebo test with a fictitious reform date. Crucially, the timing of the PPS implementation had no effect on road incidents unrelated to PPS regulations.

Suggested Citation

  • Yolanda Rebollo-Sanz & Jesús Rodríguez-López & Nùria Rodríguez-Planas, 2018. "Penalty-Point System, Deterrence and Road Safety: An Empirical Approach," Working Papers 18.14, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:18.14
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Road safety; law enforcement; driving license; and discontinuity-based model.;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • 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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