A Benefit-Cost Analysis of Auto Safety Features Date of Original
Version Applied Economics Vol. 2, Iss. 4, 1970 Abstract or Table
of Contents THERE HAS been increasing recognition of the cost of
the automobile in recent years. With few exceptions (see
GALBRAITH, 1958), economists have not quarreled with tile
resource expenditure on producing, maintaining, and providing
operating facilities for automobiles. These choices are made by
consumers in a free society and to disagree with them is to
disagree with consumer sovereignty. Associated with the
automobile, however, is another cost: the destruction of people
and property in accidents. In U.S. auto accidents in 1965 over
32,000 people were killed and about 2,400,000 were injured
severely enough to lose time from work. These figures are
increased to 50,000 fatalities and 3,600,000 injuries when all
motor vehicle accidents are taken into account. In addition, the
National Safety Council estimates that 83.1 billion of property
damage was done in motor vehicle acc