How Effective Are Non-monetary Instruments for Safe Driving?  Panel Data Evidence on the Effect of the Demerit Point System in Denmark

Kibrom Araya Abay

doi:10.1111/sjoe.12235

How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark

Kibrom Araya Abay

2 Citations (Scopus)

Abstract

Using unusually rich longitudinal data on traffic offenses, this paper exploits a reform that introduced a point-recording scheme in Denmark to estimate the behavioral responses of drivers to a non-monetary penalty based on demerit points. We find that drivers exhibited substantial behavioral responses to each demerit point assigned to their driving licenses. We also find that drivers’ efforts, and hence responses, increased with the number of demerit points they accumulated. Depending on the number of demerit points accumulated, drivers with one or more demerit points reduced their frequency of traffic offenses by 9–34 percent.

Original language	English
Journal	The Scandinavian Journal of Economics
Volume	120
Issue number	3
Pages (from-to)	894-924
ISSN	0347-0520
DOIs	https://doi.org/10.1111/sjoe.12235
Publication status	Published - Jul 2018

Keywords

Faculty of Social Sciences
Non -monetary penalties
point recording
demerit points
Behavioral response
deterrence
public road safety

Access to Document

10.1111/sjoe.12235

Cite this

@article{72cc47be019444fe98c43b3aea11a97f,

title = "How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark",

abstract = "Using unusually rich longitudinal data on traffic offenses, this paper exploits a reform that introduced a point-recording scheme in Denmark to estimate the behavioral responses of drivers to a non-monetary penalty based on demerit points. We find that drivers exhibited substantial behavioral responses to each demerit point assigned to their driving licenses. We also find that drivers{\textquoteright} efforts, and hence responses, increased with the number of demerit points they accumulated. Depending on the number of demerit points accumulated, drivers with one or more demerit points reduced their frequency of traffic offenses by 9–34 percent.",

keywords = "Faculty of Social Sciences, Non -monetary penalties, point recording, demerit points, Behavioral response, deterrence, public road safety",

author = "Abay, {Kibrom Araya}",

note = "JEL Codes: D12, H76, K42, R41, R48",

year = "2018",

month = jul,

doi = "10.1111/sjoe.12235",

language = "English",

volume = "120",

pages = "894--924",

journal = "Scandinavian Journal of Economics",

issn = "0347-0520",

publisher = "Wiley-Blackwell",

number = "3",

}

TY - JOUR

T1 - How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark

AU - Abay, Kibrom Araya

N1 - JEL Codes: D12, H76, K42, R41, R48

PY - 2018/7

Y1 - 2018/7

N2 - Using unusually rich longitudinal data on traffic offenses, this paper exploits a reform that introduced a point-recording scheme in Denmark to estimate the behavioral responses of drivers to a non-monetary penalty based on demerit points. We find that drivers exhibited substantial behavioral responses to each demerit point assigned to their driving licenses. We also find that drivers’ efforts, and hence responses, increased with the number of demerit points they accumulated. Depending on the number of demerit points accumulated, drivers with one or more demerit points reduced their frequency of traffic offenses by 9–34 percent.

AB - Using unusually rich longitudinal data on traffic offenses, this paper exploits a reform that introduced a point-recording scheme in Denmark to estimate the behavioral responses of drivers to a non-monetary penalty based on demerit points. We find that drivers exhibited substantial behavioral responses to each demerit point assigned to their driving licenses. We also find that drivers’ efforts, and hence responses, increased with the number of demerit points they accumulated. Depending on the number of demerit points accumulated, drivers with one or more demerit points reduced their frequency of traffic offenses by 9–34 percent.

KW - Faculty of Social Sciences

KW - Non -monetary penalties

KW - point recording

KW - demerit points

KW - Behavioral response

KW - deterrence

KW - public road safety

U2 - 10.1111/sjoe.12235

DO - 10.1111/sjoe.12235

M3 - Journal article

SN - 0347-0520

VL - 120

SP - 894

EP - 924

JO - Scandinavian Journal of Economics

JF - Scandinavian Journal of Economics

IS - 3

ER -

How Effective Are Non-monetary Instruments for Safe Driving? Panel Data Evidence on the Effect of the Demerit Point System in Denmark

Abstract

Keywords

Access to Document

Fingerprint

Cite this