The Impact of Premium Gasoline Price and Income Per Capita on Traffic Accidents: An Evidence from Panel Data Regression


  • Dewi Maulidar Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia
  • Mohd. Nur Syechalad Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia
  • Muhammad Nasir Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia



traffic accident, gasoline price, income per capita, elasticity


Accident and safety cannot be separated due to their trade-offs by an individual when carrying out activities. Accident and safety issues are global issues and are being investigated. This study examines the impact of premium gasoline prices and per capita income on traffic accidents in 21 districts and cities in Aceh Province of Indonesia. This study used panel data from five years and 21 districts/cities. This research model uses a random effect model. The results showed that premium gasoline prices negatively affect income per capita and traffic accidents positively. These results fit theoretically. The effect of the price of 0.13 percent and income of 0.96 percent if there is an increase of 1 percent. The impact of income per capita is 7.38 times compared to premium gasoline prices. Then, the elasticity of income approach is elastic while the price is inelastic. The increase in per capita income causes people to buy more private vehicles, so the government needs regulation and socialization of the transfer of private vehicles to public transportation. Then, the police continue to urge the people to be careful in driving and a pioneer in traffic safety.


Ahangari, H., Outlaw, J., Atkinson-Palombo, C., & Garrick, N. W. (2014). Investigation into impact of fluctuations in gasoline prices and macroeconomic conditions on road safety in developed countries. Transportation Research Record, 2465(1), 48–56.

Burger, N. E., & Kaffine, D. T. (2009). Gas prices, traffic, and freeway speeds in Los Angeles. The Review of Economics and Statistics, 91(3), 652–657.

Chi, G., Brown, W., Zhang, X., & Zheng, Y. (2015). Safer roads owing to higher gasoline prices: How long it takes. American Journal of Public Health, 105(8), e119–e125.

Chi, G., Cosby, A. G., Quddus, M. A., Gilbert, P. A., & Levinson, D. (2010). Gasoline prices and traffic safety in Mississippi. Journal of Safety Research, 41(6), 493–500.

Chi, G., McClure, T. E., & Brown, D. B. (2012). Gasoline prices and traffic crashes in Alabama, 1999–2009. Traffic Injury Prevention, 13(5), 476–484.

Chi, G., Porter, J. R., Cosby, A. G., & Levinson, D. (2013). The impact of gasoline price changes on traffic safety: a time geography explanation. Journal of Transport Geography, 28, 1–11.

Chi, G., Zhou, X., McClure, T. E., Gilbert, P. A., Cosby, A. G., Zhang, L., Robertson, A. A., & Levinson, D. (2011). Gasoline prices and their relationship to drunk-driving crashes. Accident Analysis & Prevention, 43(1), 194–203.

Dahl, C. A. (2012). Measuring global gasoline and diesel price and income elasticities. Energy Policy, 41, 2–13.

Grabowski, D. C., & Morrisey, M. A. (2004). Gasoline prices and motor vehicle fatalities. Journal of Policy Analysis and Management, 23(3), 575–593.

Gujarati, D. N., & Porter, D. C. (2003). Basic econometrics (ed.). Singapore: McGrew Hill Book Co.

Hyatt, E., Griffin, R., Rue III, L. W., & McGwin Jr, G. (2009). The association between price of regular-grade gasoline and injury and mortality rates among occupants involved in motorcycle-and automobile-related motor vehicle collisions. Accident Analysis & Prevention, 41(5), 1075–1079.

Kusdarwati, E., & Hartono, D. (2016). Pengaruh Harga Bensin terhadap Kecelakaan Lalu Lintas di Indonesia. Jurnal Ekonomi Dan Pembangunan Indonesia, 16(2), 173–186.

Leigh, J. P., & Geraghty, E. M. (2008). High gasoline prices and mortality from motor vehicle crashes and air pollution. Journal of Occupational and Environmental Medicine, 5(30), 249–254.

Lin, C.-Y. C., & Prince, L. (2013). Gasoline price volatility and the elasticity of demand for gasoline. Energy Economics, 38, 111–117.

Musso, A., Piccioni, C., Tozzi, M., Godard, G., Lapeyre, A., & Papandreou, K. (2013). Road transport elasticity: how fuel price changes can affect traffic demand on a toll motorway. Procedia-Social and Behavioral Sciences, 87, 85–102.

Nishitateno, S., & Burke, P. J. (2014). The motorcycle Kuznets curve. Journal of Transport Geography, 36, 116–123.

Pindyck, R. S., Rubinfeld, D. L., & Rabasco, E. (2013). Microeconomia. Pearson Education Limited.

Wiebe, D. J., Ray, S., Maswabi, T., Kgathi, C., & Branas, C. C. (2016). Economic development and road traffic fatalities in two neighbouring African nations. African Journal of Emergency Medicine, 6(2), 80–86.

Wilson, F. A., Stimpson, J. P., & Hilsenrath, P. E. (2009). Gasoline prices and their relationship to rising motorcycle fatalities, 1990–2007. American Journal of Public Health, 99(10), 1753–1758.

Wolff, H. (2014). Value of time: Speeding behavior and gasoline prices. Journal of Environmental Economics and Management, 67(1), 71–88.

World Health Organization. (2013). Global status report on road safety 2013: supporting a decade of action. Geneva, Switzerland.

Zhu, H., Wilson, F. A., & Stimpson, J. P. (2015). The relationship between gasoline price and patterns of motorcycle fatalities and injuries. Injury Prevention, 21(3), 153–158.




How to Cite

Maulidar, D., Syechalad, M. N., & Nasir, M. (2022). The Impact of Premium Gasoline Price and Income Per Capita on Traffic Accidents: An Evidence from Panel Data Regression. International Journal of Finance, Economics and Business, 1(2), 82–90.