The Concept of Daylight Savings has been around for a long time. In the article “Saving Time, Saving Energy”, it states that there are three economical reasons for the time switch. The first is that it saves energy. By observing it in the months of March and April we save energy that is equivalent of 10,000 barrels of oil each day. The second is that it prevents traffic injuries. Daylight savings allows people who work and have to school to travel home in the daylight which is safer then traveling in the dark. The third is that it prevents crime. Since people get more done in the daylight it leaves them less exposed to various crimes, which are more likely to happen at night then in the light of day.
The tie to economics here is the demand for daylight. The more daylight, the more energy saved for something else. You might even say that energy is an inferior good to daylight. The more daylight, the less energy demanded. The demand for electricity for lighting our homes is directly linked to when we hit the hay and when we rise in the morning. By adding an extra hour of daylight the demand for energy to light our homes goes down and the desired effects of the government to conserve energy reached.