Reply to Critics of Transportation Costing
Victoria Transport Policy Institute, 1996 - Transportation - 24 pages
Recent studies identify significant external costs from motor vehicle use. In response, various automobile industry supported organizations (called Critics in this paper) have published reports attacking these studies. These Critics argue that many transportation costs do not exist or are not externalities, and that changing prices to internalize costs would be inappropriate. This paper critiques these reports. Several analytic weaknesses are identified. The Critics misinterpret the concepts of costs and externalities, ignore marginal analysis, assume that uncertain costs have zero value, claim undemonstrated external benefits, miscalculate tax revenues, omit significance cost categories, and many cases are simply incorrect in their facts. They claim to analyse externalities of automobile use when they actually consider subsidies between drivers and non-drivers. Externalities and subsidies are different economic concepts, but the Critics use them interchangeably and selectively to support their arguments.
What people are saying - Write a review
We haven't found any reviews in the usual places.
accident costs accident risk air pollution American Petroleum Institute arguments auto-owning households Automobile Dependency automobile externalities automobile oriented land Beshers ignores bicycling calculate claim compensation congestion cost consumers internalize conventional economic costs and benefits costs of automobile Costs of Transportation Cox and Love cross subsidies defined Dougher drivers and non-drivers economic efficiency Energy in U.S. Environmental Defense Fund external benefits free parking fuel taxes full cost Green incorrectly increase inefficient Institute Washington DC Kenneth Green KPMG land use patterns marginal benefits motor vehicle neighbors non-auto-owning households offset external costs opportunity cost Policy Institute Victoria pricing provides benefits Reason Foundation reduce sales taxes Sector level analysis sector level equity Social Costs subsidies between drivers Todd Litman tort reform Transport Policy Institute transportation benefits Transportation Cost Analysis transportation cost studies transportation system travel behavior U.S. Congress U.S. Transportation uncertainty uncompensated costs underpricing Urban Transportation user fees vehicle users Victoria Transport Policy