Question on externalities of setting speed limits: Is there anything in the data on the opportunity cost of extra time in the car on productive hours worked by people who take longer to e.g. get to their jobs?
As you can see above, Larks raised a similar concern in their comment. After a quick Google search, I have found some data on this from the UK—“Each 1 mph reduction in average traffic speed costs the UK economy in excess of £1Bn in lost productivity through extended journey times” (https://www.abd.org.uk/press-release-hes-proposed-motorway-speed-limit-reduction-to-60mph-borders-on-economic-vandalism/). This suggests the impact could be quite significant and could give us reason to reduce the economic impacts that are currently being modeled to account for this lost productivity. However, as the World Health Organization found that the economic impact of road traffic injuries is approximately 3% of GDP, I think the economic impacts would still be net-positive.
Thanks for this report!
Question on externalities of setting speed limits: Is there anything in the data on the opportunity cost of extra time in the car on productive hours worked by people who take longer to e.g. get to their jobs?
Hey Devon, thanks for your comment!
As you can see above, Larks raised a similar concern in their comment. After a quick Google search, I have found some data on this from the UK—“Each 1 mph reduction in average traffic speed costs the UK economy in excess of £1Bn in lost productivity through extended journey times” (https://www.abd.org.uk/press-release-hes-proposed-motorway-speed-limit-reduction-to-60mph-borders-on-economic-vandalism/). This suggests the impact could be quite significant and could give us reason to reduce the economic impacts that are currently being modeled to account for this lost productivity. However, as the World Health Organization found that the economic impact of road traffic injuries is approximately 3% of GDP, I think the economic impacts would still be net-positive.