Department of Economics The University of Akron

1. Department of EconomicsThe University of Akron The Graduated Drivers License Program 3.A,B 1998.

2. Points of Interest • GDL • Proposal • Benefits and Costs • Recommendation • ~all statistics and data referenced are sited in the full paper provided.

3. The GDL • In 1998, Ohio enacted a version of the Graduated Drivers License Program. • Its purpose was to supplement the standing process for a minor to attain his/her driver’s license. • It has not been revised since its implementation in 1998.

4. Current Guidelines • Requirements for license. • Safety belts. • Nighttime driving restrictions.

5. 2003 • The nighttime driving restriction was 1am-5am. • 42% of fatal accidents involving teenage drivers occurred between the hours of 9pm and 5am. • Less than 1% occurred within the current GDL restriction window of 1am to 5am.

6. Proposal Expand driving curfew.

7. Benefits and Costs

8. Variables Benefits • Lives saved • Injuries avoided Costs • Opportunity cost to parents • Fuel • Implementation

9. Monetized Benefits Value of Human Life $3.6 million • 45 lives saved • Monetary value $159.3 million Value of Non-Fatal Injury $45,500 • 287 injuries avoided • Monetary value $12.8 million

10. Monetized Costs Opportunity cost per parent annually $1178 • $47.7 million Cost of fuel $1.52 (2003) • $237.45 Implementation of curfew • $47,243

11. Net Benefits Total Benefits • $168.7 million Total Costs • $56.5 million Total Net Benefits $112.2 million

12. Sensitivity to Compliance At 60% compliance • Benefits are reduced 40% to $101.2 million • Costs $56.5 million Total Net Benefit $44.8 million • A reduction of 60% *Terminal Net Benefit at 33.5% compliance

13. Recommendations and Conclusion • Positive Net Benefit • Compliance • Enforcement