Gasoline prices and road fatalities: international evidence
Date
2015-07
Authors
Burke, Paul J.
Nishitateno, Shuhei
Journal Title
Journal ISSN
Volume Title
Publisher
Wiley
Abstract
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.
Description
Keywords
gasoline price elasticity, road fatalities, international, crude oil price, global fuel subsidy
Citation
Collections
Source
Economic Inquiry
Type
Working/Technical Paper