Daylight saving time: Economic expert explains risks and benefits

It’s about time to “fall back” — that is, to set our clocks back an hour and bring daylight saving time to an end. While many enjoy the extra hour of sleep, the necessity of daylight saving time has often been questioned and criticized. Yet legislative efforts to end the time change have stalled or been reversed. On the other hand, the period of daylight saving has occasionally been extended, most recently in 2005.

Virginia Tech economic expert Jadrian Wooten discusses why the retail industries want to keep daylight saving time, the problems associated with it, and at least one justification for leaving it be.

Do any industries benefit from daylight saving time?

“The retail industry still seems to be the biggest advocate for daylight saving time. They argue that extended evening daylight encourages people to shop after work and boosts foot traffic. These benefits may not be as significant as they once were. With the increases in online shopping, extended daylight hours may not drive the same level of spending as they did in the past.”

Studies suggest that the energy saving benefit of daylight saving time is just a fraction of a percent – is that even worth the effort involved?

“Given the disruptions to sleep patterns, health concerns, and even traffic accidents that come with the time change, many would argue that the energy savings simply aren’t enough to justify it anymore. People generally largely vote in favor of not changing clocks, and politicians have tried to push through bills picking daylight saving time or standard time and sticking with just one.”

What are some of the most egregious unintended consequences of daylight saving time?

“Many people would point to the health risks — heart attacks, strokes, and even workplace accidents — as the most serious, but these are often concentrated among older people at risk for those health issues to begin with. You see similar increased health risks around major holidays, but no one argues we should ban those. I’d argue that the spike in car accidents is particularly troubling, since it’s an increased risk for everyone on and near the road.” 

Can there be any economic justification for daylight saving time in 2024?

“I’d argue that the most compelling economic justification may actually lie in its mental health benefits from maintaining more ‘average’ sunrise and sunset times across the year. These benefits are less obvious than traditional metrics like spending, but they’re significant. Switching permanently to either standard time or daylight saving time would disadvantage either early risers or night owls, while the current system provides each group with benefits for half the year.”

About Wooten
Jadrian Wooten is a collegiate associate professor with the Virginia Tech Department of Economics and is the author of “Parks and Recreation and Economics.” Wooten has been featured in USA Today, Inside Higher Ed, WJLA ABC 7 Washington, D.C., and NBC News, among scores of other media outlets. Read more about him here.

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