Abstract
A basic tenet of the "new conservatism" in political economy is that government policies frequently lead to unintended consequences which may offset the benefits of the policy. Auto safety legislation may a case in point. As the first country to make the wearing of seat belts compulsory. Australia is highly suitable as a case study. The results are consistent with the hypothesis that drivers respond to a reduction in risk by increasing driving intensity., shifting some of the welfare cost of auto safety legislation on to non- occupants, whose casualty rates are higher than they would have been in the absence of seat belt legislation.