Citation

Dardis R, Garkey J, Zhang Z. J. Consum. Policy 1989; 12(1): 19-38.

Copyright

(Copyright © 1989, Holtzbrinck Springer Nature Publishing Group)

DOI

10.1007/BF00411387

PMID

unavailable

Abstract

The purpose of this paper is to examine the history of motor carrier regulation in the United States and to assess the potential benefits and costs to consumers from deregulation of trucking in 1980. Benefits are based on the impact of increased competition and changes in operating restrictions on rates and logistics cost savings while costs are based on changes in highway safety due to the impact of deregulation on truck maintenance, truck driver behavior, and changes in the motor vehicle mix.

The results of this study indicate that the partial deregulation of trucking in 1980 entailed considerable benefits due to the relaxation of entry restrictions and changes in operating restrictions. Average annual logistics cost savings were $38 billion from 1981 to 1986. It was concluded that the direct effect of deregulation on highway safety was favorable indicating that truck safety and truck driver behavior had improved under deregulation. However, deregulation had a positive effect on the proportion of miles driven by trucks which, in turn, had a positive effect on fatality rates. Thus, the indirect effect of deregulation was unfavorable. These results suggest that the driving environment, rather than the truck or truck driver, may play a major role in highway safety under deregulation. The need to monitor the adequacy of the existing road system is also reinforced by recent increases in the speed limit from 55 mph to 65 mph in many states.