Supriya Ghosh (Editor)

Externalities of automobiles

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The externalities of automobiles, as similarly other economic externalities, are the measurable costs for other parties except the car proprietor, such costs not being taken into account when the proprietor opts to drive their car. According to the Harvard University, the main externalities of driving are local and global pollution, oil dependence, traffic congestion and traffic accidents; while according to a meta-study conducted by the Delft University these externalities are congestion and scarcity costs, accident costs, air pollution costs, noise costs, climate change costs, costs for nature and landscape, costs for water pollution, costs for soil pollution and costs of energy dependency.

Contents

Negative

The negative externalities seem to be the most obvious to confirm, since the driver does not take into account for example the negative effects of air pollution on third parties, when they opt to drive their car. The legislators and the regulators shall therefore internalize those external costs, either by taxes on fuels for example, either by any kind of limitation to car usage, such as parking meters or urban tolls. Nevertheless it seems the drivers in some countries, already pay some external costs with taxes. Road taxes in the Netherlands for instance, have a relatively high yearly value, which cover the maintenance of the infrastructures. Nevertheless, in the majority of western nations, the external costs of driving, are not covered totally neither by taxes, or by any kind of car usage limitation.

Traffic collision

The inefficiency of the public passenger transport system has resulted in increasing numbers of private vehicles on the roads. Transporting less no. of passengers per vehicle leads to heavy traffic congestion that resulted in increased fuel consumption to households and to the economy. It also affects to the labor productivity which waste on the road due to the heavy traffic. In addition to that due to heavy consumption of fuel it leads to negative externalities which caused to air pollution by releasing Carbon Dioxide to the environment.

References

Externalities of automobiles Wikipedia