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Department of Economics The University of Akron

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Presentation on theme: "Department of Economics The University of Akron"— Presentation transcript:

1 Department of Economics The University of Akron
The Graduated Drivers License Program 3.A,B 1998.

2 Points of Interest GDL Proposal Benefits and Costs Recommendation
~all statistics and data referenced are sited in the full paper provided.

3 The GDL In 1998, Ohio enacted a version of the Graduated Drivers License Program. Its purpose was to supplement the standing process for a minor to attain his/her driver’s license. It has not been revised since its implementation in 1998.

4 Current Guidelines Requirements for license. Safety belts.
Nighttime driving restrictions.

5 2003 The nighttime driving restriction was 1am-5am.
42% of fatal accidents involving teenage drivers occurred between the hours of 9pm and 5am. Less than 1% occurred within the current GDL restriction window of 1am to 5am.

6 Proposal Expand driving curfew.

7 Benefits and Costs

8 Variables Benefits Lives saved Injuries avoided Costs
Opportunity cost to parents Fuel Implementation

9 Monetized Benefits Value of Human Life $3.6 million 45 lives saved
Monetary value $159.3 million Value of Non-Fatal Injury $45,500 287 injuries avoided Monetary value $12.8 million

10 Monetized Costs Opportunity cost per parent annually $1178
$47.7 million Cost of fuel $1.52 (2003) $237.45 Implementation of curfew $47,243

11 Net Benefits Total Benefits $168.7 million Total Costs $56.5 million
Total Net Benefits $112.2 million

12 Sensitivity to Compliance
At 60% compliance Benefits are reduced 40% to $101.2 million Costs $56.5 million Total Net Benefit $44.8 million A reduction of 60% *Terminal Net Benefit at 33.5% compliance

13 Recommendations and Conclusion
Positive Net Benefit Compliance Enforcement


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