Gasoline Prices and Traffic Safety in Mississippi

Abstract

Problem: Limited literature suggests that gasoline prices have substantial effects on reducing fatal crashes. However, the literature focuses only on fatal crashes and does not examine the effects on all traffic crashes.

Methods: Mississippi traffic crash data from April 2004-December 2008 from the Mississippi Highway Patrol and regular-grade unleaded gasoline price data from the Energy Information Administration of the U.S. Department of Energy were used to investigate the effects of gasoline prices on traffic safety by age, gender, and race. Results: Gasoline prices have both short-term and intermediate-term effects on reducing total traffic crashes and crashes of females, whites, and blacks. The intermediate-term effects are generally stronger than the short-term effects. Gasoline prices also have short-term effects on reducing crashes of younger drivers and intermediate-term effects on older drivers and male drivers. Impact on Industry: Higher gasoline taxes reduce traffic crashes and may result in additional societal benefits.

Keywords: Gasoline Prices, Traffic Crashes,Traffic Safety, Age, Gender, Race

JEL Classification: N70, Q4, Q41, L91, R4