Thursday, August 28, 2008

High Petrol Price Savings!

Australian road fatality figures are down 11.6% across the first seven months of 2008 accelerating a downward trend which has been evident over recent years. Could this be attributable to changed driving habits as a result of higher petrol prices?
American trauma statistics back this thesis up even further, where road fatalities fell by 22.1% in March and 17.9% in April - the latest figures available, but which appear to be continuing through May and June. WHilst some of this might be attributable to a lowering in the distance travelled, it is more likely that the greater proportion is attributable to improved driving habits to increase fuel economy.
Which raises an interesting economic question. If fatalities are down this much, how much reduction in serious injury is also evident, with what saving in health costs? Dare it be suggested that higher fuel costs might actually be cheaper overall for the economy, even if not for individuals within it?

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