THE ECONOMIC IMPACT OF AIR BAGS

The development of air bags into a prominent and economically feasible method of satisfying the purposes of the National Traffic and Motor Vehicles Safety Act of 1966 is discussed, and the details are given of a cost-benefit analysis of the occupant crash protection standard. The projected economic benefits of the protection system range from $1.2 billion to $3.5 billion under the single year approach, and from $6.7 billion to $19.1 billion under the cumulative approach. The net economic benefits of air bags would then range from $0.45 billion to $11.4 billion. A 1071 analysis of the air bag program projects a significanlly higher economic cost per fatality than the original analysis and uses more optimistic estimates of the number of lives saved and disabling injuries prevented. The significance of the analysis is discussed, and comments are made on the reliability of the studies.

• Corporate Authors:

  American University

  Washington College of Law, Massachusetts and Nebraska Avenues, NW
  Washington, DC  United States  20016
• Authors:
  • Lawrence, W H
• Publication Date: 1976-12

Media Info

• Features: Figures; Tables;
• Pagination: p. 371-407
• Serial:
  • American University Law Review
  • Volume: 25
  • Issue Number: 2
  • Publisher: American University

Subject/Index Terms

• TRT Terms: Air bags; Benefit cost analysis; Crashes; Economic impacts; Fatalities; Highway safety; Injuries; Vehicle occupants; Vehicles
• Subject Areas: Economics; Highways; Passenger Transportation; Safety and Human Factors; Vehicles and Equipment;

Filing Info

• Accession Number: 00152969
• Record Type: Publication
• Files: TRIS
• Created Date: May 31 1977 12:00AM