Economic and Political Implications of Extending Daylight Saving Time

|


This article was originally published in OPR’s Issue 11: Time.

The United States Sunshine Protection Act of 2023, a legislative act which would make Daylight Saving Time (DST) a permanent fixture of American life, was introduced in the United States Senate and the House of Representatives on March 1, 2023. Hailed for eliminating the biannual ritual of changing the clocks, the Sunshine Protection Act claims to foster economic gains and improved well-being. However, the issue may be more nuanced than first assumed.

In 1784, Benjamin Franklin extolled the virtues of adjusting the work day around sunlight hours in the Journal de Paris. During this era, candle production was an expensive but necessary affair. The costs of wax and tallow – not to mention hours paid to labourers who manufactured candles – were deemed wasteful by Franklin: ‘In the six months between the 20th of March and the 20th of September…[a]n immense sum! that the city of Paris might save every year, by the economy of using sunshine instead of candles.’ Franklin preferred a more practical approach, namely, adjusting sleep schedules according to a well-known proverb which he cited in Poor Richard’s Almanack: ‘Early to bed, early to rise, makes a man healthy, wealthy and wise.’

Farmers – who later objected to DST due to disruption of their and their livestock’s sun-dependent schedules for field and farm work – were accustomed to rising early and working in the dark. Increased migration to cities and decreased prominence of agrarian life occurred in the early 1800s, meaning that more candles were used for illumination, and wealthy individuals spared no expense. Candles supplemented oil lamps through the mid-1800s when paraffin or kerosene lighting emerged. The industrial boom of the post-Civil War Reconstruction era saw installation of gas lighting in cities: both for poorer citizens working late hours, and for the Gilded Age balls of the wealthier ones. Alice Vanderbilt, a wealthy socialite, heralded the arrival of electricity with an electric light dress during a sumptuous 1883 New York City ball. Soon after, electricity was introduced in mainstream society and forever transformed energy usage. 

Railroads – led by railroad barons such as the 19th century Vanderbilt family – wielded tremendous economic influence and shaped time regulation in the 1800s for purposes of punctuality, economy, and efficiency. Initially, the slow speed of travel prior to the 1880s obviated the need for reducing the number of local time regions – precisely 144 – in the United States. However, mass confusion, an increasing number of railroad collisions, decreased railroad safety, and lost commercial opportunities accompanied the advent of speedier railroad travel. Implementation of standardised North American time zones was promulgated by Sandford Fleming in 1878 to aid in resolving these problems. United States adoption of Standard Railway Time occurred  November 18, 1883.  

In England, it was William Willett that argued for the implementation of DST, claiming that 2.5 million British pounds per year could be saved in his 1907 publication Waste of Daylight. Later in 1916, the Summer Time Act passed through Parliament, partially to aid in increasing munitions production for the World War I. The United States Congress passed the Standard Time Act in 1918 – the first measure to codify a systematic means of timekeeping via time zones. The Act also designated the first day of DST as March 31, 1918. England followed with a revised Summer Time Act of 1925. Permanent DST implementation in England continued when astronomer Sir John Herschel in 1928 promoted the idea of having uniform time zones throughout designated contiguous geographic areas.

The Uniform Time Act of 1966 in the United States established DST as ‘the period commencing at 2 o’clock antemeridian on the first Sunday of April of each year and ending at 2 o’clock antemeridian on the last Sunday of October of each year.’ This meant having DST begin at 2:00 AM on the first Sunday of April and end on the last Sunday of October at 2:00 AM. The Interstate Commerce Commission of the United States government was afforded jurisdictional enforcement of the Uniform Time Act, which also included enforcement of United States time zones. 

President Nixon signed legislation in 1973 which initiated DST all year long in response to an ongoing oil embargo imposed on the United States by the Organization of Arab Petroleum Exporting Countries (OAPEC). Nixon proposed that 150,000 barrels of oil could be saved daily via reduced fuel consumption. Supposedly, more hours of daylight would contribute to less fuel being used to power electricity. Many scholars have stated, however, that the actual amount of fuel saved was insignificant for decreasing fuel consumption in extended DST, citing a mere 1% overall savings. The way Americans used fuel had changed since the eras of WWI and WWII – a point not likely considered by lawmakers when drafting the 1973 DST legislation. Researchers who prepared a congressional report for the United States Department of Energy Office of Energy Efficiency and Renewable Energy,  that within the historical data set from the 1970s, DST did not result in expected electricity savings, as increased fuel powers longer hours of electricity usage. In fact, studies showed that the use of fuel for utility and electricity  rose with longer DST as households relied more on electricity-powered air conditioning in spring and summer, and heating in the autumn. Another factor was that Americans drove further distances in the 1970s with improved highway systems which were non-existent in decades past – consequently, using more fuel. According to the Federal Reserve, the central bank of the United States, oil prices during the embargo rose from $2.90 per barrel to $11.65 per barrel – four times the previous cost. Decreased fuel consumption was partly attributed to high gasoline prices which prompted consumers to plan their trips more carefully to conserve fuel. This fact was compounded by the prevalence of automobiles with poor gasoline/mileage efficiency, which dissuaded consumers from further purchases of these vehicles. The result was an adverse economic impact on the automobile industry. 

Eventually, year-round DST was reversed in late 1974. After the 1973 energy crisis, the United States initiated plans for sourcing more energy domestically. Disappointing results concerning actual fuel conservation of 100,500 barrels of oil per day – nearly 50,000 barrels short of President Nixon’s predicted savings – were recorded. The American public grew weary of permanent DST for many of the aforementioned reasons along with a few others– notably, the politically unpopular risk to child pedestrian safety. Children in route to school were vulnerable to increased automobile-pedestrian accidents in extended morning darkness. Similarly, adult pedestrians in New York cited safety concerns when commuting to work in the dark early morning hours – particularly in the winter. 

Countless positive and negative economic, medical, and political effects of increased DST have been enumerated. Economically, the spring advent of DST seems to result in widespread sleep deprivation and circadian rhythm disruption which may be associated with decreased productivity and increased absenteeism or presenteeism. However, not all employees with different chronotypes are not impacted equally.  “Night owl” workers are impacted by the beginning of DST more severely than “Morning Larks.” Regardless, decreased work productivity means economic losses – by one assessment $434 million annually. The stock market, on the other hand, may reap benefits of extended DST. Some analysts deduce that the S&P 500 gains an average of 7.5% over several years during DST compared with 2% during standard time. Researchers believe that DST helps ameliorate investor moods, possibly from increased risk-taking behaviour resulting in greater stock market gains. However, not all researchers agree, citing studies that dissociate DST from stock market volatility. Additionally, changes to DST may adversely impact the coordination of international trade and commerce.

Positive effects of DST have implications for public health and traffic safety. Longer daylight illumination for pedestrians and motorists is correlated with fewer car accidents,  particularly at dusk during rush hour. Consequently, more lives are likely saved and serious injuries avoided, meaning that year-round DST could benefit pedestrian and automobile safety. However, according to the scientific journal BMJ in reference to DST, ‘The loss of one hour of sleep in spring, in particular, has been linked to an increase in heart attacks, strokes, road accidents, and negative mood.’ Adolescents are particularly vulnerable to increased morning grogginess and depression due to sleep debt during the “loss of an hour” at the beginning of DST each spring. More frequent fatal traffic accidents in the morning in extended darkness may offset some of the benefits of DST from evening traffic safety. According to the American Academy of Sleep Medicine – which opposes DST, ‘Current evidence best supports the adoption of year-round standard time, which aligns best with human circadian biology and provides distinct benefits for public health and safety.’  The annual change to DST was found to be correlated with the disruption of circadian rhythms – the body’s internal time regulation clocks – and sleep deprivation. Sleep deprivation is associated with a host of chronic health ailments such as diabetes, obesity and increased susceptibility to the development of cancer.

Wildlife, such as deer, adjust their daily activities by internal circadian rhythms guided by sunlight and darkness. The beginning and end of DST both alter deer behaviour patterns due to changes in human and automobile activity at dawn and dusk. These changes coincide with the autumn deer mating and breeding season – increasing the likelihood of deer-automobile collisions. Additional evidence exists showing that DST reduces car accidents with wildlife (particularly deer), resulting in savings of $1.19 billion annually in deer-automobile collision costs over those incurred in standard time. 

Politicians eager to fight crime cite benefits of DST with improved public safety. DST is correlated with decreased criminal activity, including a 48% decrease in murders, a 56% decrease in rapes, and a 7% decrease in robbery rates, saving $59 million per year from avoided robberies alone. Overall, $558 million in avoided social costs for all crimes is noted. The end of DST seems to improve morning voter turnout, obviating the need to rise as early as usual. This is particularly helpful for voters casting their ballots before embarking upon school runs and the regular workday. Permanent DST is beneficial for groups and geographic regions which benefit from recreation and tourism, such as the state of Florida, which has lobbied for permanent DST. At least 29 states are considering legislative measures for permanent DST, but past national efforts for permanent DST have proven politically unpopular and unsuccessful due to continued child safety concerns surrounding the walk to school on dark mornings.

Debates regarding the extension of DST with the Sunshine Protection Act of 2023 have persisted since the passage of The Energy Policy Act of 2005 extended DST dates from the second Sunday of March at 2:00 AM to the first Sunday of November at 2:00 AM beginning in the year 2007. Arriving at a solution as to whether DST should be permanent will likely require the cooperation of numerous interest groups – health advocates, economists, and political stakeholders. A healthy and happy electorate can more capably make fiscal decisions which positively impact the economy. The prospect of potential economic gains under DST could prove compelling for those who wish to see DST extended. Voters with potentially increased disposable income under year-round DST may feel freer to shop and donate to politicians. Eventually, health advocates, economists, political stakeholders, and the American public must decide if the benefits of extending DST permanently outweigh its disadvantages.

Dorkina Myrick, MD, PhD, JD, LLM, LLM, MPP (Oxon) is a physician and policy advisor who resides in the Washington, DC area. She is a 2016 graduate of the Blavatnik School of Government of the University of Oxford.