Purpose: To evaluate the cost-effectiveness of regulations that prohibit us
ing a cellular telephone while driving a motor vehicle. Design: Decision an
alysis of risks and benefits related to cellular telephones and driving. Se
tting: United States population in 1997. Measures: Health benefits measured
as the quality-adjusted life years potentially saved. Financial benefits m
easured as health care and other services potentially averted. Costs of reg
ulation measured as the lost productivity derived from willingness to pay f
or cellular telephone calls. Results: Under base-case conditions, cellular
telephone calls in the United States each day accounted for about 984 repor
ted collisions, 1,729 total collisions, 2 deaths, 317 persons with injuries
, 99 lost years of life expectancy, 161 lost quality-adjusted life years, $
1 million in health care costs, and $4 million in property damage and other
costs. This reflected a total of about 35 million telephone calls while dr
iving, 70 million calling minutes, and $33 million in total value to societ
y. The estimated cost-effectiveness ratio for a regulation restricting cell
ular telephone usage while driving was $300,000 per quality-adjusted life y
ear saved, but ranged from $50,000 to $700,000 under alternative assumption
s and interpretations of data. Regulations applied to teenage males could b
e cost-saving to society if the value of a call fell below 37 cent per minu
te. Conclusions: Regulations restricting cellular telephone usage while dri
ving are less cost-effective for society than other safety measures. Nevert
heless, regulations may be justifiable because the benefits and harms do no
t always involve the individual who has the cellular telephone. Increasing
the price of a call (or adding a supplementary tax) might decrease the numb
er of discretionary calls, be cost-saving for society, and be life-saving f
or individuals.