THE OPTIMUM SPEED LIMIT

In setting the speed limit, the government should consider only externalities, e.g., the tendency of one driver's speed to endanger other drivers. In this paper, we discuss the methodology for estimating the optimal speed limit, based on externalities. We carry out a numerical illustration to demonstrate how the methodology leads to (1) a numerical estimate of the optimum speed limit, (2) an estimate of the dollar loss from a suboptimum speed limit, (3) an estimate of cost per life saved, and (4) the suggestion that federal traffic data collection efforts and traffic studies be redirected toward discovering two crucial parameters: the speed drivers would go if left alone and the ratio of the external to internal marginal cost of highway speed. (Author)

• Corporate Authors:

  Public Research Institute

  2000 North Beauregard Street
  Alexandria, VA  United States 
• Authors:
  • Jondrow, J
  • Bowes, M
  • Levy, R
• Publication Date: 1981-5

Media Info

• Pagination: 27 p.

Subject/Index Terms

• TRT Terms: Costs; Crashes; Drivers; Fatalities; Federal laws; Ground traffic; Highways; Optimization; Safety; Savings; Speed limits; Traffic safety; Velocity
• Uncontrolled Terms: Accident costs; Limitations
• Old TRIS Terms: Kill probabilities
• Subject Areas: Finance; Highways; Operations and Traffic Management; Safety and Human Factors; I71: Traffic Theory; I83: Accidents and the Human Factor;

Filing Info

• Accession Number: 00344359
• Record Type: Publication
• Source Agency: National Technical Information Service
• Report/Paper Numbers: PRI-PP-312
• Files: TRIS
• Created Date: Nov 23 1982 12:00AM