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This project aimed to identify the best approach for determining and monitoring the contribution that government regulatory interventions in New Zealand make to mitigate the major risks associated with the land transport system. It analysed the safety and environmental risks in the New Zealand road transport sector, and reviewed the local and international literature to provide a framework for assessing the effectiveness of regulatory interventions aimed to mitigate these risks.

The literature shows a preference for regulation that is less interventionist and provides greater freedom of choice to those regulated. Findings also suggest that many New Zealand transport regulations have been introduced and not revisited. This calls for a more periodic and systematic approach to ex-post (after-the-event) analysis to ensure that land transport regulation is fit for purpose.

A suggested approach to evaluation of existing regulations includes the following components:

• definition of the problem justifying the regulation, based on the identification of market failures and the underlying causes
• review of the effectiveness of the regulation in achieving targeted outcomes
• identification of options including no regulation; 4) cost-benefit analysis of regulations and alternatives
• identification and analysis of opportunities for regulatory improvement.

Keywords: econometrics, ex-post analysis, regulation