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The economic cost of a 130 kph speed limit in Germany

Gössling, Stefan LU ; Kees, Jessica LU orcid ; Litman, Todd and Humpe, Andreas (2023) In Ecological Economics 209.
Abstract

Germany remains the only large country in the world without a general speed limit on highways. One of the main arguments for this policy is that lower speeds represent a travel time cost that is not outweighed by benefits, such as a reduction in greenhouse gas emissions. As transport decision making in the European Union is based on cost-benefit analysis (CBA), this paper compares the value of travel time, fuel consumption, infrastructure, crashes, carbon dioxide (CO2), and air pollution. Results suggests that, at the low end of the estimate, a 130 kph speed limit will generate welfare gains in the order of 950 million Euro per year. The ‘no speed limit’ policy consequently represents a subsidy forwarded to fast drivers. The... (More)

Germany remains the only large country in the world without a general speed limit on highways. One of the main arguments for this policy is that lower speeds represent a travel time cost that is not outweighed by benefits, such as a reduction in greenhouse gas emissions. As transport decision making in the European Union is based on cost-benefit analysis (CBA), this paper compares the value of travel time, fuel consumption, infrastructure, crashes, carbon dioxide (CO2), and air pollution. Results suggests that, at the low end of the estimate, a 130 kph speed limit will generate welfare gains in the order of 950 million Euro per year. The ‘no speed limit’ policy consequently represents a subsidy forwarded to fast drivers. The paper also discusses the views of the public vis-à-vis automobile lobbies, and the relevance of Germany's climate change mitigation law, mandating that transport systems be decarbonized. The CBA suggests that a 130 kph speed limit is a policy field where environmental concerns, positive economic effects, and public opinion can be aligned.

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Please use this url to cite or link to this publication:
author
; ; and
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Highways, Speed limit, Traffic safety, Transport economics, Transport politics
in
Ecological Economics
volume
209
article number
107850
publisher
Elsevier
external identifiers
  • scopus:85152952423
ISSN
0921-8009
DOI
10.1016/j.ecolecon.2023.107850
language
English
LU publication?
no
additional info
Publisher Copyright: © 2023 The Authors
id
79104fb4-2758-4521-b08f-279f5b4f79eb
date added to LUP
2026-06-25 19:07:16
date last changed
2026-06-29 08:28:27
@article{79104fb4-2758-4521-b08f-279f5b4f79eb,
  abstract     = {{<p>Germany remains the only large country in the world without a general speed limit on highways. One of the main arguments for this policy is that lower speeds represent a travel time cost that is not outweighed by benefits, such as a reduction in greenhouse gas emissions. As transport decision making in the European Union is based on cost-benefit analysis (CBA), this paper compares the value of travel time, fuel consumption, infrastructure, crashes, carbon dioxide (CO<sub>2</sub>), and air pollution. Results suggests that, at the low end of the estimate, a 130 kph speed limit will generate welfare gains in the order of 950 million Euro per year. The ‘no speed limit’ policy consequently represents a subsidy forwarded to fast drivers. The paper also discusses the views of the public vis-à-vis automobile lobbies, and the relevance of Germany's climate change mitigation law, mandating that transport systems be decarbonized. The CBA suggests that a 130 kph speed limit is a policy field where environmental concerns, positive economic effects, and public opinion can be aligned.</p>}},
  author       = {{Gössling, Stefan and Kees, Jessica and Litman, Todd and Humpe, Andreas}},
  issn         = {{0921-8009}},
  keywords     = {{Highways; Speed limit; Traffic safety; Transport economics; Transport politics}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Ecological Economics}},
  title        = {{The economic cost of a 130 kph speed limit in Germany}},
  url          = {{http://dx.doi.org/10.1016/j.ecolecon.2023.107850}},
  doi          = {{10.1016/j.ecolecon.2023.107850}},
  volume       = {{209}},
  year         = {{2023}},
}