THE COSTS AND BENEFITS OF MOTOR TRUCK REGULATION

Many factors indicate that economic regulation of the trucking industry increases the social costs of freight transport while conferring meager benefits in the process. This article explores the rationale for such a prediction and attempts to measure the costs and benefits attributable to the regulation of the trucking industry. It is noted that rate regulation promotes nonprice competition in the form of more frequent scheduling and it is possible that some inventory savings may accrue to consignees. Such an outcome is not certain, however, since the greater flexibility and carrier utilization possible in an unregulated highway transport market might produce equally frequent and speedy service. Even if the $59 million in inventory savings estimated by the Bureau of Economics of the Interstate Commerce Commission is realized, this is a meager benefit to counteract a $5.3 billion additional social cost attributable to the continuation of economic regulation.

• Corporate Authors:

  Sage Publications, Incorporated

  275 South Beverly Drive
  Beverly Hills, CA  United States  90212
• Authors:
  • Felton, J R
• Publication Date: 1979

Media Info

• Features: Figures; References;
• Pagination: p. 143-156
• Serial:
  • Policy Studies Review Annual
  • Volume: 3
  • Publisher: Sage Publications, Incorporated

Subject/Index Terms

• TRT Terms: Benefits; Costs; Economics; Freight transportation; Inventory; Motor carriers; Rates; Regulations; Savings; Socioeconomic factors; Transportation; Trucks
• Subject Areas: Economics; Law; Society; Transportation (General);

Filing Info

• Accession Number: 00315022
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 22 1980 12:00AM