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You are a city council member considering whether or not to vote for the installation of speed limit cameras on a treacherous highway that surrounds the city. According to statistical studies, this traffic enforcement program would reduce the risk of fatal highway accidents from 4.1 to 0.89%. The yearly cost of operating the system is $400,000. Suppose ice road truckers out earn ordinary truckers by $120,000 per year. The risk of a job related fatal accident is 6% among ice road truckers and 4.9% among ordinary road truckers. Assume these figures reflect truck operators of similar age, education, abilities, etc. and that these characteristics are comparable to the average American.
What is the net social benefit of installing the speed limit system, i.e. the benefits minus the costs?
Based on your answer above, would you vote in favour of the system? Yes, No, or Too difficult to assess. Ice road truckers have very different driving skills than the urban commuter.
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