Premium
GASOLINE PRICES AND ROAD FATALITIES: INTERNATIONAL EVIDENCE
Author(s) -
Burke Paul J.,
Nishitateno Shuhei
Publication year - 2015
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12171
Subject(s) - gasoline , endogeneity , economics , subsidy , price elasticity of demand , order (exchange) , crude oil , agricultural economics , econometrics , microeconomics , engineering , finance , market economy , petroleum engineering , waste management
This study utilizes data for 144 countries from 1991 to 2010 to present the first international estimates of the gasoline price elasticity of road fatalities. We instrument each country's gasoline price with that country's oil reserves and the yearly international crude oil price to address potential endogeneity concerns. Our findings suggest that the average reduction in road fatalities resulting from a 10% increase in the gasoline pump price is in the order of 3%–6%. Around 35,000 road deaths per year could be avoided by the removal of global fuel subsidies. ( JEL R41, H23, O18, Q43)