The Cost of Convenience: Ridesharing and Traffic Fatalities

56 Pages Posted: 22 Nov 2018

See all articles by John Manuel Barrios

John Manuel Barrios

University of Chicago - Booth School of Business

Yael V. Hochberg

National Bureau of Economic Research (NBER); Rice University - Jesse H. Jones Graduate School of Business

Hanyi Yi

Rice University - Jesse H. Jones Graduate School of Business

Multiple version iconThere are 4 versions of this paper

Date Written: November 20, 2018

Abstract

We examine the effect of the introduction of ridesharing services in U.S. cities on fatal traffic accidents. The arrival of ridesharing is associated with an increase of approximately 3% in the number of motor vehicle fatalities and fatal accidents. This increase is not only for vehicle occupants but also pedestrians. We propose a simple conceptual model to explain the effects of ridesharing’s introduction on accident rates. Consistent with the notion that ridesharing increases congestion and road use, we find that its introduction is associated with an increase in arterial vehicle miles traveled, excess gas consumption, and annual hours of delay in traffic. On the extensive margin, ridesharing’s arrival is also associated with an increase in new car registrations. These effects are higher in cities with prior higher use of public transportation and carpools, consistent with a substitution effect, and in larger cities and cities with high vehicle ownership. The increase in accidents appears to persist—and even increase—over time. Back-of-the-envelope estimates of the annual cost in human lives range from $5.33 billion to $13.24 billion per year.

JEL Classification: I0, O3, R4

Suggested Citation

Barrios, John Manuel and Hochberg, Yael V. and Yi, Hanyi, The Cost of Convenience: Ridesharing and Traffic Fatalities (November 20, 2018). University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2018-80. Available at SSRN: https://ssrn.com/abstract=3288802 or http://dx.doi.org/10.2139/ssrn.3288802

John Manuel Barrios (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Yael V. Hochberg

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

Hanyi Yi

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

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