Relating Household Consumption Expenditures to Road Traffic Fatalities: A Rural–Urban Study

Abstract

Research shows that traffic fatality risk is generally higher in rural areas than in urban areas. In developing countries, vehicle ownership and investments in public transportation typically increase with economic growth. These two factors together increase the vehicle population, which in turn affects traffic safety. This paper presents a study focused on the relationship of various factors—including household consumption expenditure data—with traffic fatality in rural and urban areas and thereby aims to fill some of the gaps in the literature. One such gap is the impacts of personal and non-personal modes of travel on traffic safety in rural versus urban areas in developing countries which remains unexplored. An exhaustive panel data modeling approach is adopted. One important finding of this study is that evidence exists of a contrasting relationship between household expenditure and traffic fatality in rural and urban areas. The relationship between household expenditure and traffic fatality is observed to be positive in rural areas and a negative in urban areas. Increases in most expenditure variables, such as fuel, non-personal modes of travel, and two-wheeler expenditures, are found to be associated with an increase in traffic fatality in rural areas.