Efficacy of Electronic Monitoring

Abstract

The use of electronic performance monitoring is becoming increasingly widespread in conjunction with the digitalization of today's supply chains, yet the efficacy of these systems to improve desired performance outcomes is still highly uncertain. This study examines the effect of a federal regulation mandating the adoption of electronic data logging devices for commercial truck drivers in late 2017 and the efficacy of this regulatory effort in improving safety through an analysis of motor vehicle fatalities pre- and post-mandate. Results of a difference in difference estimation show the ELD mandate failed to reduce motor vehicle fatalities, and, in fact, may have increased overall fatality rates. These findings suggest that the expected benefits of electronic monitoring are likely to be highly contingent on proper design and implementation and a failure to consider the broader effects may lead to negative outcomes.