Heterogeneity of the Accident Externality from Driving

Huang, Rachel J.; Tzeng, Larry Y.; Wang, Kili C.

doi:10.1111/j.1539-6975.2013.01517.x

Cited by 7 publications

(15 citation statements)

References 12 publications

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“…However, our result is partly inconsistent with the study of Huang et al. (), who find that both severity and frequency are positively associated with density. Conflicting results are not so strange, however, because the negative externality of density may vary in different locations.…”

Section: Regression Resultscontrasting

confidence: 99%

“…In this claim frequency regression, we expect the density variable to have a positive and significant coefficient, as is shown in Edlin and Karaca‐Mandic () and Huang et al. ().…”

Section: Methodsmentioning

confidence: 52%

“…Huang et al. () used individual‐level data in Taiwan to prove the existence of negative externality of driving. However, all of these studies focused on the quantity of driving, not cost heterogeneity.…”

Section: Introductionmentioning

confidence: 99%

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Externalities From Driving Luxury Cars

Park

Han

2017

Risk Manage Insurance Review

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Driving luxury cars creates negative externalities. Driving a luxury car increases property damage liability insurance costs for all drivers due to the striking differences in repair costs of luxury cars and nonluxury cars in Korea. In this study, we estimate the externalities related to auto accidents involving luxury cars by running a two‐part model using unbalanced individual‐level panel data on insurance claims and characteristics of the insured party. We find evidence of negative externalities in all of our results. To be specific, a 1 percent increase in luxury cars raises the property damage liability costs by 1.9–2.6 percent per claim. The estimated nationwide increase in the cost of liability due to driving of luxury cars in Korea is USD 139–196 million per year. This cost is shared by all drivers nationwide.

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Section: Regression Resultscontrasting

confidence: 99%

“…In this claim frequency regression, we expect the density variable to have a positive and significant coefficient, as is shown in Edlin and Karaca‐Mandic () and Huang et al. ().…”

Section: Methodsmentioning

confidence: 52%

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Externalities From Driving Luxury Cars

Park

Han

2017

Risk Manage Insurance Review

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“…Hence, green cars might accordingly be driven more. If this is true, then according to the findings of Huang, Tzeng, and Wang (2014), the higher green car drivers' average mileage is, the greater their likelihood of being involved in traffic accidents. Therefore, although green car drivers drive more carefully, the lower-risk effect of their increased care could be offset by the effect of driving more.…”

Section: Hypothesis and The Focused Basismentioning

confidence: 99%

“…involved in traffic accidents. This result is consistent with the findings of Huang, Tzeng, and Wang (2014). Furthermore, the estimated coefficient of the interaction term d greenÃmileage i is negative and significantly different from zero at the 1 percent significance level.…”

mentioning

confidence: 99%

ARE GREEN CAR DRIVERS FRIENDLY DRIVERS? A STUDYOF TAIWAN'S AUTOMOBILE INSURANCE MARKET

Huang¹,

Wang

2017

J of Risk & Insurance

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By integrating claims data from Taiwan's compulsory liability insurance with a unique data set on driving mileage records for each car, this article examines whether green car drivers have lower accident risk. We find that after controlling for the mileage driven per car, the traffic accident risk of green car drivers is significantly lower. Our empirical evidence also confirms that green car drivers are, on average, high‐mileage drivers. Moreover, driving more results in a higher accident probability for green car drivers despite their being lower‐risk drivers. The policy implications are discussed.

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Traffic accidents and the London congestion charge

Green

Heywood

Navarro

2016

Journal of Public Economics

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In a rare effort to internalize congestion costs, London recently instituted charges for traveling by car to the central city during peak hours. Although the theoretical influence on the number and severity of traffic accidents is ambiguous, we show that the policy generated a substantial reduction in both accidents and fatalities in the charged area and hours. At the same time, the spatial, temporal and vehicle specific nature of the charge may cause unintended substitutions as traffic and accidents shift to other proximate areas, times and to uncharged vehicles. We demonstrate that, to the contrary, the congestion charge reduced accidents and fatalities in adjacent areas, times and for uncharged vehicles. These results are consistent with the government's objective to use the congestion charge to more broadly promote public transport and change driving habits. JEL Codes: I18, R48, H27The authors thank the Melvin Lurie Memorial Fund at UWM which allowed Heywood and Navarro to work together in the fall of 2013. The authors thank Domingo Perez-Ximenez de Embun for helpful comments.

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Heterogeneity of the Accident Externality from Driving

Cited by 7 publications

References 12 publications

Externalities From Driving Luxury Cars

Externalities From Driving Luxury Cars

ARE GREEN CAR DRIVERS FRIENDLY DRIVERS? A STUDYOF TAIWAN'S AUTOMOBILE INSURANCE MARKET

Traffic accidents and the London congestion charge

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