Abstract
This paper compares the effects of two reforms implemented in Italy in 2003 and 2016 – respectively the Penalty Points System (PPS) and the Road Homicide (RH) – aimed at reducing road accidents and mortality. In terms of the two main parameters characterizing enforcement – probability and intensity of the penalty – the two policies are opposite. In fact, with the PPS it is very easy to lose points but the maximum penalty – that is, temporary withdrawal of the license – is not dramatic. The RH, instead, introduced heavy penalties in the rare event of dead and injured people. We find a stronger decrease of dead and injured people with the PPS than with the RH. We compare the costs and benefits of the two policies and conclude that, in this context, strong penalties like incarceration are not socially beneficial.