Skip to main content

Cost-benefit analysis of red light cameras in US cities and towns

American Traffic Solutions (ATS) has commissioned a cost-benefit analysis the results of which it claims show the direct economic savings to communities that result from using red-light safety cameras at dangerous intersections. The analysis was carried out by John Dunham and Associates, an economic research firm specialising in economic and fiscal impact studies.
July 18, 2012 Read time: 3 mins
17 American Traffic Solutions (ATS) has commissioned a cost-benefit analysis the results of which it claims show the direct economic savings to communities that result from using red-light safety cameras at dangerous intersections. The analysis was carried out by John Dunham and Associates, an economic research firm specialising in economic and fiscal impact studies.

The savings are realised by the decrease in crashes and the ability to redeploy police officers from monitoring dangerous intersections to other crime-fighting efforts.

The study applied a conservative approach, using only the most basic factors for costs and savings. The researchers calculated the estimated cost savings to a community from the deployment of one red-light safety camera at one busy intersection in 25,000 cities and towns in all 50 states and the District of Columbia. To direct attention on the savings realised from reduced crash numbers, revenues resulting from citations paid by red-light runners were not factored into the study’s calculations.

City-specific savings, along with a detailed explanation of the methodology used, %$Linker: External 0 0 0 oLinkExternal can be reviewed here www.atsol.com/economicbenefit false http://www.atsol.com/economicbenefit false false%>. Calculations were estimated over a five-year period.

According to John Dunham and Associates, whose researchers conducted the analysis, a reduction in the number of traffic crashes translates into a direct savings for the community. Red-light safety cameras help reduce crashes, as documented by multiple studies cited in Dunham’s analysis. By reducing crashes, the cameras contribute an economic benefit to the community.

“The measurable costs of crashes, which have been calculated by the 324 US Department of Transportation, are immense and impact everyone. These costs include medical, emergency services, property damage, lost productivity, the monetised value of pain and suffering, lost quality of life, travel delays, insurance administration and legal and court costs,” said John Dunham, managing partner of the firm.

The savings varied from city to city due to the variety of factors that were included in the methodology. For instance, the analysis shows a savings in Hazelwood, Missouri, of $163,036 from one red-light safety camera in the first year of operation and a cumulative savings of $728,952 over five years. In St. Petersburg, Florida, the savings in the first year is $187,440 and $846,849 over five years. In Linden, New Jersey, the savings are $289,184 in the first year and more than $1.3 million over five years.

“It’s indisputable that there is a cost associated with automobile crashes,” said James Tuton, president and CEO of ATS. “This study finally provides us with the measurable economic benefits a city can realise by using even one red-light safety camera to decrease crashes in their community. However, the greatest benefit any community can achieve through road safety camera programmes is saving people’s lives.”

Related Content

  • June 18, 2012
    Motorcycle helmet laws save money
    Annual cost savings in US states with universal motorcycle helmet laws were nearly four times greater (per registered motorcycle) than in states without these comprehensive laws, according to a Morbidity and Mortality Weekly Report study released by the Centers for Disease Control and Prevention. Universal helmet laws require that motorcycle riders and passengers wear a helmet every time they ride.
  • May 28, 2012
    Red-light running data and trends across the US
    More than 2.3 million drivers in 18 states ran a red light in 2011, according to the first-ever Safer Roads Report 2012: Trends in Red-Light Running from the National Coalition for Safer Roads (NCSR). The report examines red-light running trends across 18 states and is designed to help raise driver awareness of the dangers of red-light running. The risks of red-light running are clear: intersection-related vehicle accidents caused more than 8,500 causalities in 2001, according to the National Highway Traffi
  • October 14, 2014
    Webinar: The future cost of gridlock
    A new report by Inrix in collaboration with one of the world's leading economic think tanks, the Centre for Economics and Business Research (CEBR), quantifies the cost of traffic congestion on individual households and national economies in the US, UK, France and Germany. This is the first study of its kind to forecast the projected increases in these costs in these countries and their most congested cities between 2013 and 2030. Driven by urbanisation and increased GDP per capita over the next 17 ye
  • May 14, 2018
    Lyft, Uber have mixed impact on San Fran mobility
    The extent to which ride-hailing has become a real force in the mobility landscape of San Francisco is great for consumers – but there are downsides, a report finds. Andrew Stone takes a look. Uber and Lyft, the two major ride-hailing platforms in San Francisco, are out-competing local cab firms in many ways - and are firmly established as a significant part of the daily mobility mix there, a recent study reveals. Researchers mined publicly-available data derived from the application programming interface