THE OPTIMUM SPEED LIMIT. PROFESSIONAL PAPER 312

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.

• Corporate Authors:

  Public Research Institute

  Center for Naval Analysis, 1401 Wilson Boulevard
  Arlington, VA  United States  22209
• Authors:
  • Jondrow, J
  • Bowes, M
  • Levy, R
• Publication Date: 1981-5

Media Info

• Features: References;
• Pagination: 21 p.

Subject/Index Terms

• TRT Terms: Costs; Estimating; Methodology; Optimization; Speed; Speed limits
• Old TRIS Terms: Optimum speed
• Subject Areas: Finance; Highways; Operations and Traffic Management; I73: Traffic Control;

Filing Info

• Accession Number: 00366805
• Record Type: Publication
• Source Agency: National Highway Traffic Safety Administration
• Report/Paper Numbers: HS-032 932
• Files: HSL, TRIS, USDOT
• Created Date: Aug 30 1982 12:00AM