The effect of traffic fines on traffic accidents in Türkiye

This study is to estimate the effect of traffic fines on traffic accidents in Türkiye by using annual data for the period 1990-2023 with the Johansen cointegration test. The dependent variable employed is the number of traffic accidents while the independent variables are traffic fines, average years of education, per capita income and road/motor vehicle ratio. The result of the analysis estimates a long-run relationship between traffic fines and traffic accidents. However, improvements in socio-economic status such as education and per capita income do not seem to have an impact on traffic accidents. Traffic fines, as a mandatory compliance instrument, emerge as an important determinant in encouraging safer driving behavior. Traffic fines should be used as an effective tool not only in reducing traffic accidents but also in reducing the social and economic costs of these accidents. Keywords: Public Policy, Externalities, Traffic Accidents, Traffic Fines, Johansen Cointegration Test