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Department of Economics The University of Akron
The Graduated Drivers License Program 3.A,B 1998.
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Points of Interest GDL Proposal Benefits and Costs Recommendation
~all statistics and data referenced are sited in the full paper provided.
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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.
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Current Guidelines Requirements for license. Safety belts.
Nighttime driving restrictions.
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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.
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Proposal Expand driving curfew.
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Benefits and Costs
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Variables Benefits Lives saved Injuries avoided Costs
Opportunity cost to parents Fuel Implementation
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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
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Monetized Costs Opportunity cost per parent annually $1178
$47.7 million Cost of fuel $1.52 (2003) $237.45 Implementation of curfew $47,243
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Net Benefits Total Benefits $168.7 million Total Costs $56.5 million
Total Net Benefits $112.2 million
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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
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Recommendations and Conclusion
Positive Net Benefit Compliance Enforcement
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