Uber reduced alcohol-related traffic deaths in the U.S., study says
The study found that ridesharing decreased alcohol-related traffic deaths by 6.1 per cent in 2019 and saved 214 lives
Author of the article: Daniel Johnson
July 27, 2021
Using proprietary data from Uber, a recent study from the National Bureau of Economic Research (NBER) found that ridesharing had a large negative impact on traffic fatalities and a larger impact on alcohol-related traffic fatalities.
Results from the study found that ridesharing decreased alcohol-related traffic deaths by 6.1 per cent in the U.S. and reduced total traffic deaths by four per cent. Estimates for the value of the annual life-saving benefits could range from $2.3 billion to $5.4 billion USD. The study was conducted by Michael Anderson and Lucas Davis, both of whom are economists at the University of California, Berkeley.
“Our estimates of the effects on alcohol-related fatalities imply that Uber saved 214 lives in 2019, or a reduction of approximately 6.1 per cent,” the study says.
Last year, traffic deaths in the U.S. totalled 42,000 of which more than 10,000 involved alcohol.
The results also suggest these benefits may represent a significant fraction of the consumer surplus gained from ridesharing. A consumer surplus is used to measure benefits to consumers and occurs when a product or service is priced lower than a consumer would otherwise pay, according to Investopedia.
Where previous studies on ridesharing’s relation to traffic fatalities have been inconsistent or even contradictory, Anderson and Davis used proprietary tract-level information on Uber’s ridership that allowed them to find an effect. This data allowed the economists to find a large negative impact of ridesharing on alcohol-related and total traffic fatalities. Data on traffic fatalities was taken from the National Traffic Safety Administration’s (NHTSA) Fatality Analysis Reporting System (FARS).
The economic damages from traffic fatalities and the annual life-saving benefits in the study were calculated using the Department of Transportations’ value of a statistical life (VSL) standard. This standard values each life at $10.9 million USD.
NEBER is a private organization that is nonpartisan and investigates and analysis major economic issues. The organization provides its research to both the public and private sectors, also academics. NEBER currently has a network of about 1,600 economists at various North American universities and colleges.
Michael Anderson is a professor of agricultural and resource economics with research interests in transportation economics, environmental economics, health economics and applied economics. Lucas Davis is a research associate with interests in energy and environmental economics applied microeconomics and public finance.