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The economic cost of a 130 kph speed limit in Germany
Linnaeus University, School of Business and Economics, Department of Marketing and Tourism Studies (MTS). Western Norway Res Inst, Norway.ORCID iD: 0000-0003-0505-9207
Linnaeus University, School of Business and Economics, Department of Marketing and Tourism Studies (MTS).
Victoria Transport Policy Inst, Canada.
Munich Univ Appl Sci, Germany.
2023 (English)In: Ecological Economics, ISSN 0921-8009, E-ISSN 1873-6106, Vol. 209, article id 107850Article in journal (Refereed) Published
Sustainable development
SDG 12: Ensure sustainable consumption and production patterns, SDG 11: Make cities and human settlements inclusive, safe, resilient, and sustainable, SDG 13: Take urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy
Abstract [en]

Germany remains the only large country in the world without a general speed limit on highways. One of the main arguments for this policy is that lower speeds represent a travel time cost that is not outweighed by benefits, such as a reduction in greenhouse gas emissions. As transport decision making in the European Union is based on cost -benefit analysis (CBA), this paper compares the value of travel time, fuel consumption, infrastructure, crashes, carbon dioxide (CO2), and air pollution. Results suggests that, at the low end of the estimate, a 130 kph speed limit will generate welfare gains in the order of 950 million Euro per year. The 'no speed limit' policy conse-quently represents a subsidy forwarded to fast drivers. The paper also discusses the views of the public vis-`a-vis automobile lobbies, and the relevance of Germany's climate change mitigation law, mandating that transport systems be decarbonized. The CBA suggests that a 130 kph speed limit is a policy field where environmental concerns, positive economic effects, and public opinion can be aligned.

Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 209, article id 107850
Keywords [en]
Highways, Speed limit, Traffic safety, Transport economics, Transport politics
National Category
Transport Systems and Logistics Climate Research
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-121484DOI: 10.1016/j.ecolecon.2023.107850ISI: 000985100500001Scopus ID: 2-s2.0-85152952423OAI: oai:DiVA.org:lnu-121484DiVA, id: diva2:1764199
Available from: 2023-06-08 Created: 2023-06-08 Last updated: 2023-09-07Bibliographically approved

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Gössling, StefanKees, Jessica

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