Analysis of a financial incentive to encourage safer driving practices

Abstract

This paper reports on the behavioural response of motorists to a variable rate charging scheme designed to encourage safer driving practices and reduce exposure to crash-risk – specifically kilometres driven, night-time driving and speeding. The study involved a five-week ‘before’ period of GPS monitoring to establish how motorists drove normally, followed by a five-week ‘after’ period of GPS monitoring in which charges were levied and changes assessed. Incentives were paid to motorists for the difference in the charges between the two five-week periods. Vehicle kilometres travelled (VKT) were reduced by ten percent, although the sample was evenly split by those increasing VKT compared to those decreasing VKT. The proportion of distance speeding fell by 4.7 percent, which when coupled with decreases in VKT, implied a net reduction of kilometres spent speeding of over 40 percent. Three-quarters of the sample reduced their speeding. Exit interviews with a cross-section of participants highlighted the practical difficulties of reducing kilometres, but (more encouragingly) reinforced the potential to reduce speeding.