The accident externality from driving

• 成果类型: Article
• 署名作者: Edlin, Aaron S.; Karaca-Mandic, Pinar
• 署名单位: University of California System; University of California Berkeley; National Bureau of Economic Research; RAND Corporation
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/508030
• 发表日期: 2006
• 页码: 931-955
• 关键词: insurance; liability

摘要

We estimate auto accident externalities ( more specifically insurance externalities) using panel data on state-average insurance premiums and loss costs. Externalities appear to be substantial in traffic-dense states: in California, for example, we find that the increase in traffic density from a typical additional driver increases total statewide insurance costs of other drivers by $1,725-$3,239 per year, depending on the model. High-traffic density states have large economically and statistically significant externalities in all specifications we check. In contrast, the accident externality per driver in low-traffic states appears quite small. On balance, accident externalities are so large that a correcting Pigouvian tax could raise $66 billion annually in California alone, more than all existing California state taxes during our study period, and over $220 billion per year nationally.