Monday, August 17, 2015

Uber Lowers Drunk Driving Arrests in S.F.–Dramatically

By Ferenstein Wire of Breitbart. Excerpts:
"Temple University’s Brad Greenwood and Sunil Wattal published a new paper  which finds that (not surprisingly) cheap taxi-like options make it easier for people to make the safer decision and call an Uber or Lyft rather than driving home themselves.

If the benefits of Uber in California were extended to the entire country, ride-sharing would save billions of dollars and hundreds of lives.

“Economically, results indicate that the entrance of Uber X results in a 3.6%-5.6% decrease in the rate of motor vehicle homicides per quarter in the state of California. With more than 13k deaths occurring nationally each year due to alcohol related car crashes at a cost of 37 billion dollars, results indicate that a complete implementation of Uber X would create a public welfare net of over 1.3 billion to American taxpayers and save roughly 500 lives annually,” wrote the team."

"Previous attempts at estimating the number of drunk driving deaths that Uber had reduced were fraught with controversy. When Uber teamed up with Mothers Against Drunk Driving (MADD) for a study, Uber ended up claiming that the conclusions of the research were much more convincing than MADD was willing to admit. There was just too much noise in the data.

This latest study uses more sophisticated statistical analysis and leverages a common economic trick to estimate the effects of Uber. The decision to enter a market is often political: Uber will start hiring in a city if it knows it won’t face overbearing regulation. That decision is often unrelated to other reasons why there might be reductions in drunk-driving accidents, such as a “city’s population, bar scene, and tougher enforcement,” note the authors."

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