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Traffic safety: Speed limits,strict liability and a km tax
Institution:1. Faculty of Medicine, University of Tsukuba, 1-1-1 Tennodai, Tsukuba, Ibaraki 305-8577, Japan;2. Kanagawa University of Human Services, 1-10-1 Heisei-cho, Yokosuka, Kanagawa 238-8522, Japan;3. Faculty of Engineering, Information and Systems, University of Tsukuba, 1-1-1 Tennodai, Tsukuba, Ibaraki 305-8573, Japan;1. Universität der Bundeswehr München, DE;2. Universität der Bundeswehr München, DE;1. Department of Agronomy, Food, Natural Resources, Animals and Environment (DAFNAE), University of Padova, Agripolis, Viale dell’Università 16, 35020, Legnaro (PD), Italy;2. Italian National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA), C.R. Trisaia S.S. 106 Jonica, 75026, Rotondella (MT) Italy;1. Daniel Consultants, Inc., 8950 MD 108, Columbia, MD 21045, USA;2. The University of North Carolina at Charlotte, 9201 University City Boulevard, Charlotte, NC 28223-0001, USA
Abstract:This paper focuses on two specific determinants of accidents: speed and the activity level. If there is no government intervention, people do not take into account the full cost of their driving and they will drive too fast and too much. In our setting, the government can use three instruments to influence the behaviour of people: speed limits, strict liability and a kilometre tax. We analyse the choice of the speed and activity level under the different instruments and determine the optimal combinations. Given our assumptions we never reach the social optimum. The results are illustrated with a numerical example.
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