This got me thinking of the economics behind the raised speed limit. I was able to enjoy added utility by eating lunch with friends, gained utility from arriving at my appointment on time, the doctor and I engaged in a mutually beneficial transaction, I didn't have to reschedule and make the journey again (which would create a whole mess of implicit and explicit costs), and I gained some extra utility just from the fact that I enjoy driving fast. And all these benefits came with almost no negative effects on anyone, as I passed very few other cars on my trip down the Freeway (while smiling, a positive externality I chose not to charge them for).
I haven't done any research on other people's preferences, but I believe I'm not the only person who would appreciate a higher speed limit on the states highways in areas where it would be safe (not near schools and residential areas, like the portion of the Fall Line Freeway I traveled.) Higher speed limits would decrease the transaction costs of trade, as less time would be spent traveling. Due to lower transaction costs, people would be more willing to engage in trade, therefore boosting the economy, something that would help the US get out of our current recession. Again, this is assuming the benefits from driving faster outweigh any marginal costs. Lots of research would need to be done before the state raises speed limits across the board. But as a lead-footed college student who hates speeding tickets, I'm all for it.
+ 1 Billion utils to Brandon.
ReplyDeleteCosts you haven't accounted for: the higher rate of wear and tear on highways at higher speeds (if there is one), the higher environmental and monetary cost of driving faster (i.e. gas mileage goes down), and the higher rate of accidents at a higher speed. [also the loss in revenue the state police departments would have from fewer speeding tickets]
ReplyDeleteThat being said, I am totes for a higher speed limit, especially on 441.
DEVIL's ADVOCATE: I suggest we raise speed limits to 85 and increase reckless driving fines into the $5,000 range. If traffic is heavy, speeding profusely is highly reckless and deserves to be penalized. If I'm the only car on the road, then I should be able to drive as fast as I can while maintaining control.
ReplyDeleteHere's one to think about- If we raise speed limits, would insurance costs rise? Seems as though the higher risk of fatalities would make insurers adjust their premiums accordingly. Depending on how much they change, this could be a price I'm willing to pay. Also- I wonder if fuel consumption/tax revenue would increase noticeably?
ReplyDeleteOh, and Dr. Clark- with the budget situation we're looking at now, a $5,000 reckless driving fine looks pretty good. I wonder how much that would bring in...
ReplyDelete@Joel - Based on what I have seen on 441 and in Atlanta, I can safely say that a $5,000 reckless driving fine would bring in enough to eliminate the need for tuition increases.
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