Transportation Market Distortions

This paper analyzes the transportation market for evidence of distortions of certain key elements that result in economic inefficiencies and economically excessive use of certain modes, mainly automobiles. Individual market principles are examined to determine their efficiency in the transportation marketplace. Consumer options are studied for ways they can be applied to transport markets and current conditions. Few options exist in multi-modal settings, with the result that there are many barriers to non-automotive travel. Pricing studies suggest that about a third of automobile costs are external and a quarter are internal-fixed, which are the ones that give motorists an incentive to make the most out of their trips. As a result, drivers do not receive the full benefits of incentives to drive more efficiently. Land use pricing and economic neutrality in the transport sector are also examined. Reforms are proposed in all the areas and proposed as possible solutions to intractable problems such as congestion and equity of access while reducing the less efficient instances of automobile use without necessarily eliminating it.


  • English

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 19-36
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01056042
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Aug 27 2007 12:02PM