ECONOMICS OF HIGHWAY SAFETY

Economic analysis can provide a means of establishing the socially desirable level of accident loss in various parts of our transportation system. The optimal amount of safety would be found when the cost to society of producing the last increment (marginal cost) just equals the benefit to society (marinal social benefit). This article contains an explicit model of the behavior of motorists in situations involving accident risk. The model is useful not so much for the conclusions that can be drawn from it, but rather for providing a frame of reference for evaluating improvements in safety. The present law does not recognize the fact that many motorists may not find the benefits to society equal to the cost of their discomfort or inconvenience. If it is deemed socially desirable to alter the behavior of individuals to promote safety, economic incentives can be used to promote this goal.

  • Availability:
  • Corporate Authors:

    Eno Transportation Foundation

    1250 I Street, NW, Suite 750
    Washington, DC  United States  20005
  • Authors:
    • ANDERSON, R C
  • Publication Date: 1975-1

Media Info

  • Pagination: p. 99-111
  • Serial:
    • Traffic Quarterly
    • Volume: 29
    • Issue Number: 1
    • Publisher: Eno Transportation Foundation
    • ISSN: 0041-0713

Subject/Index Terms

Filing Info

  • Accession Number: 00080751
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 26 1975 12:00AM