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External effects and social costs of road transport

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  • Verhoef, Erik

Abstract

The article contains a welfare economic analysis of road transport's external effects. First, we discuss the definition of external effects. Applying this definition, it is concluded that road transport activities give rise to a wide range of external costs. However, there are no external benefits associated with individual road transport activities which might compensate for such effects. Therefore, road transport volumes will in general be beyond the optimal levels. Second, we describe a conceptual framework for the analysis of environmental external costs. It is explicitly recognized that not only the externality as such, but also the induced outlays on defensive and abatement activities should play an important role in welfare economic analyses of external effects. Then, this framework is used for the evaluation of the existing empirical work on road transport's environmental external costs (i.e., noise and air pollution). It is concluded that most of the studies carried out in that field will provide an underestimation of road transport's external costs by definition. Finally, some attention is paid to empirical estimates of road transport's accident costs.

Suggested Citation

  • Verhoef, Erik, 1994. "External effects and social costs of road transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 273-287, July.
  • Handle: RePEc:eee:transa:v:28:y:1994:i:4:p:273-287
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    Cited by:

    1. Cees Gorter & Sytze A. Rienstra, 1997. "Factors influencing the Composition of the Urban Transport System in the Year 2030 - A Panel Analysis of Experts' Opinions," Tinbergen Institute Discussion Papers 96-181/5, Tinbergen Institute.
    2. Forkenbrock, David J., 1999. "External costs of intercity truck freight transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 505-526.
    3. Galindo, Luis Miguel & Samaniego, Joseluis & Ferrer, Jimy & Alatorre, José Eduardo & Reyes, Orlando, 2016. "Cambio climático, políticas públicas y demanda de energía y gasolinas en América Latina: un meta-análisis," Documentos de Proyectos 718, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Yves Crozet & Grégoire Marlot, 2001. "Urban toll and sustainable city: Pricing forms and various kinds of economic rationale
      [Péage urbain et ville " soutenable " : figures de la tarification et avatars de la raison économiqu
      ," Post-Print halshs-01356830, HAL.
    5. André De Palma & Alexandre Guimard, 2014. "Urbanism, an overview," Working Papers hal-00969574, HAL.
    6. Li, Yao & Fan, Jin & Zhao, Dingtao & Wu, Yanrui & Li, Jun, 2016. "Tiered gasoline pricing: A personal carbon trading perspective," Energy Policy, Elsevier, vol. 89(C), pages 194-201.
    7. Delucchi, Mark A. & Hsu, Shi-Ling, 1996. "The External Damage Cost of Direct Noise From Motor Vehicles," University of California Transportation Center, Working Papers qt8cx9j5vg, University of California Transportation Center.
    8. E.T. Verhoef & P. Nijkamp & P. Rietveld & T.R. Lakshmanan, 1997. "Benefits and Costs of Transport," Tinbergen Institute Discussion Papers 97-084/3, Tinbergen Institute.
    9. Thomas Bjørner, 1996. "Any need for coordination of policies towards transit traffic with a negative local externality?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(2), pages 221-245, September.
    10. Dieplinger, Maria & Fürst, Elmar, 2014. "The acceptability of road pricing: Evidence from two studies in Vienna and four other European cities," Transport Policy, Elsevier, vol. 36(C), pages 10-18.
    11. Claude Abraham & Alain Bonnafous & Daniel Chabanol & Marc Chabert & Yves Crozet & Christiane Dalmais, 2000. "Péage et financement d'infrastructures en milieu urbain - Lyon, les leçons d'un périphérique. Actes du colloque, 5-6 décembre 2000, Lyon (France)," Post-Print halshs-00200161, HAL.
    12. Fridstrøm, Lasse & Østli, Vegard, 2017. "The vehicle purchase tax as a climate policy instrument," Transportation Research Part A: Policy and Practice, Elsevier, vol. 96(C), pages 168-189.
    13. Anders Skonhoft & Bjart Holtsmark, 2014. "The Norwegian support and subsidy of electric cars. Should it be adopted by other countries?," Working Paper Series 15814, Department of Economics, Norwegian University of Science and Technology.
    14. Mouter, Niek & Annema, Jan Anne & van Wee, Bert, 2013. "Ranking the substantive problems in the Dutch Cost–Benefit Analysis practice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 241-255.
    15. Kulmer, Veronika & Koland, Olivia & Steininger, Karl W. & Fürst, Bernhard & Käfer, Andreas, 2014. "The interaction of spatial planning and transport policy: A regional perspective on sprawl," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 7(1), pages 57-77.
    16. Cruijssen, F.C.A.M. & Salomon, M., 2004. "Empirical Study : Order Sharing Between Transportation Companies may Result in Cost Reductions Between 5 to 15 Percent," Discussion Paper 2004-80, Tilburg University, Center for Economic Research.
    17. Geßner, Christian & Weinreich, Sigurd, 1998. "Externe Kosten des Straßen- und Schienenverkehrslärms am Beispiel der Strecke Frankfurt - Basel," ZEW Dokumentationen 98-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    18. David Levinson & David Gillen & Adib Kanafani, 1998. "The social costs of intercity transportation: a review and comparison of air and highway," Working Papers 199801, University of Minnesota: Nexus Research Group.
    19. Chester, Mikhail & Horvath, Arpad, 2008. "Environmental Life-cycle Assessment of Passenger Transportation: A Detailed Methodology for Energy, Greenhouse Gas and Criteria Pollutant Inventories of Automobiles, Buses, Light Rail, Heavy Rail and ," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt5670921q, Institute of Transportation Studies, UC Berkeley.
    20. Yiannakoulias, Nikolaos & Scott, Darren M., 2013. "The effects of local and non-local traffic on child pedestrian safety: A spatial displacement of risk," Social Science & Medicine, Elsevier, vol. 80(C), pages 96-104.
    21. Damart, Sébastien & Roy, Bernard, 2009. "The uses of cost-benefit analysis in public transportation decision-making in France," Transport Policy, Elsevier, vol. 16(4), pages 200-212, August.

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