EuHEA Seminar - Silvia Balia (University of Cagliari)

Silvia Balia

Abstract

This paper investigates the road safety impact of an Italian law that sets a limit on vehicle power for first-year licensees. We leverage the between-cohort differences in exposure to the reform to determine its effect on traffic accidents. We find that, when prevented from using high-powered cars, teen drivers are 13% less likely to cause an accident and 28% less likely to cause a fatal accident, mainly because of fewer speed violations. These effects persist even after the one-year restriction expires. Our findings highlight the effectiveness of policies that, instead of directly targeting risky behaviours, reduce exposure to high-risk settings.

Discussant: Thomas Siedler (University of Potsdam)

Chair: Matteo Lippi Bruni (University of Bologna)