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How the dismal science applies to your
life.
Click, Clack, and Car Talk NPR's Tappet brothers are wrong about the societal costs of
car phones. By
Steven E. Landsburg Posted Wednesday, January 30, 2002, at 1:12 PM PT
Click and Clack, the
Tappet brothers of NPR's Car Talk, have declared war
on drivers with cell phones. Their weapon is moral suasion, in the form of
bumper stickers that say, "Drive Now, Talk Later." (The Tappets claim that
NPR's management vetoed their first choice: "Would You Drive Better If I
Crammed That Cell Phone Up Your Keister?") The bumper stickers are aimed
not just at drivers but at legislators. The Tappet brothers want a ban on
cell phone use by drivers in all 50 states. So far, they've met their goal
in exactly zero out of 50.
Talking
while driving is deadly. Of this there is much evidence and little doubt.
Cell phone use increases your accident risk by almost 400 percent. But so
what? It's a big and unwarranted leap from "talking while driving is
deadly" to "talking while driving is bad." After all, lots of
things are deadly without being bad. Take driving itself, for example.
Just getting behind the wheel (as opposed to staying home in bed)
multiplies your accident risk by far more than 400 percent, but so far the
Tappets have not proposed to outlaw driving.
Presumably that's because they recognize that the benefits of driving
exceed the costs, even though the costs include tens of thousands of
fatalities every year. In other words, the Tappets implicitly recognize
that cost-benefit analysis is a legitimate basis for public policy. So you
might think they'd welcome a cost-benefit analysis of cell phone use by
drivers, at least as a starting point for a discussion. Instead, when just
such an analysis came along, the Tappets responded with vitriol, lies, and
slander.
The analysis is courtesy
of Robert Hahn, Paul Tetlock, and Jason Burnett of the AEI-Brookings Joint
Center for Regulatory Studies. They conclude that drivers' cell
phones are indeed deadly but nevertheless (on net) a good thing. On their
Web page, the Tappet brothers describe that work thusly: "Here's an
economic analysis that shows the enormous value to the economy of driving
and talking. (As long as we don't factor in the injuries, lost lives, pain
and suffering of all those accidents, that is!)"
That description is a slanderous lie. The AEI-Brookings study is
all about factoring in the injuries, lost lives, pain and
suffering of cell phone-related accidents. The researchers estimate that
in 1999, driver use of cell phones caused about 300 fatalities, 38,000
nonfatal injuries, and 200,000 damaged vehicles.
In a 1999 letter to the New York Times, the Tappet brothers
refer to one of those 300 fatalities—a 2-and-a-half-year-old girl named
Morgan Lee—and ask, "What price has Mr. Hahn plugged into his nice, clean
economic model to account for the misery and tears that such outright
selfishness has wrought?" If they'd bothered to read the research they're
so quick to criticize, they'd have found the answer: The price is $6.6
million, a widely used standard based on Harvard law professor Kip
Viscusi's analysis of how much people are willing to pay to preserve lives
in a variety of contexts.
Pricing out the fatalities at $6.6 million each, and adding in the
costs of injuries and vehicle damage, Mr. Hahn and his colleagues estimate
that in 1999, cell phone use by drivers caused $4.6 billion worth of
damage. That's the cost of letting drivers use cell phones. But to prove
something is bad, it's not enough to calculate the cost. You've got to
also calculate the benefit and see which is bigger.
Here's how Hahn and his colleagues do that: They figure the value of a
call is equal to what you're willing to pay for it minus what you
actually pay for it. They estimate willingness to pay from demand
studies and actual charges from real-life cell phone bills. They factor in
the truism that some calls are more valuable than others and conclude that
the cell phone calls made by drivers in 1999 had a total value of $25
billion. That $25 billion benefit beats the $4.6 billion cost, so cell
phones for drivers are on net a good thing.
Actually, I don't buy it, and here's why: Drivers make a lot of calls
that could easily wait for the next rest stop. Those calls shouldn't count
as benefits of legalized talking-while-driving because they'd get made
even if talking-while-driving were banned. So—as Hahn et al. acknowledge
in a note near the end of their paper—the true benefit of
talking-while-driving is probably far less than $25 billion. They still
believe it's well over $4.6 billion, though. For the sake of argument,
let's suppose it's $10 billion.
Then what would the Tappets' cherished ban accomplish? Drivers would
give up $10 billion in benefits to prevent 300 deaths (plus some injuries
and property damage). That's a lousy deal. The same $10 billion invested
in, say, firefighting equipment would save substantially more than 300
lives—conceivably (using Viscusi's numbers) about five times as many.
Instead of taking away drivers' cell phones, we could confiscate $10
billion, use it to buy fire trucks, and do the world a lot more good.
Or maybe not. The AEI-Brookings study is hardly the last word on the
matter. Maybe a more thorough study, with more precise numbers, will show
that a cell phone ban does make sense. Or maybe the next study
will confirm what Hahn and his colleagues believe. Either way, Click and
Clack won't trouble themselves to read the next study. Their minds are
already made up.