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

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  • Kibrom Araya Abay
Using unusually rich longitudinal traffic offense data, 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 exhibit substantial behavioral responses to each demerit point assigned to their driving license. We also find that drivers’ effort, and hence response, increases with the number of demerit points 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 languageEnglish
JournalThe Scandinavian Journal of Economics
Issue number3
Pages (from-to)894-924
Publication statusPublished - 2018

Bibliographical note

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

    Research areas

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

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