As Tim Requarth writes in Slate, Peltzman's ideas failed to stop seatbelts, but the did lead to widespread motorcycle helmet law repeals - and a wave of fatalities and maimings.
Risk compensation does occur in very narrow and specific circumstances, but all the studies purporting to show that it is a widespread, predictable outcome of any safety regulation have failed to replicate.
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But just as health-and-safety panic served a useful purpose, so does risk compensation fraud: it serves as an unassailable justification for both big-business-freindly deregulation and authoritarian sex-negativity.
Risk compensation helps corporations that want to avoid retooling to comply with safety measures, such as fight child safety caps on medicine:
https://www.degruyter.com/document/doi/10.7556/jaoa.2006.106.7.405/html
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