Responding to Mr. Brauer's request to specify subsidies for driving and
transit:

As I suggested in a post earlier this week, the best and most comprehensive
compendium of transportation costs of which I'm aware is accessible on the
web site of the Victoria Transport Policy Institute.  Try this web site and
go to chapter 6 for some useful summaries.  A bibliography also is
available.  

http://www.vtpi.org/tca/

The compendium that you'll find evaluates transportation costs that fall
into the following categories:

Internal fixed costs:

        Vehicle ownership (e.g., purchase price, insurance)
        Internalized parking costs (off-street residential parking and
long-term leased parking)

Internal variable costs:

        Vehicle operation (e.g., fuel, oil, tires, tolls, short-term parking
fees)
        Travel time
        Internalized accident costs

External costs:

        Operating subsidies (e.g., for transit)
        Externalized accident costs (others that you hit)
        Externalized parking costs (off-street parking costs not borne by
users)
        Congestion costs
        Road facility costs
        Land value (opportunity costs for land used for roads/parking)
        Traffic services (policing, traffic lights, emergency services,
etc.)
        Transport diversity (value to society of options for non-drivers,
lower-income people, etc)
        Air pollution
        Noise
        Resource externalities (e.g., externalized costs of producing
petroleum products)
        Barrier effects (delays roads cause to nonmotorized travel)
        Land use impacts (Economic, social and environmental impacts due to
low-density, automobile                 oriented development patterns)
        Water pollution
        Waste (external costs to dispose of vehicle wastes)

The compendium distills the results of a large number of studies that
attempt to estimate these costs for different modes of transportation in
different ways.  As one general result, the average cost of driving a car
during urban peak conditions is about $1.30 per mile.  Of this, about $0.45
is internal variable cost, and therefore (presuming the motorist is thinking
about it) sets the price by which the motorist determines how much to drive
(and, in the longer term, where to live and work).  About $0.25 is internal
fixed (which, if the motorist thinks about it, tends to promote MORE driving
to make full use of the investment) and about $0.60 is externalized.

To me, probably the two most significant external costs of driving are the
two that are the most difficult to quantify: Land use impacts and resource
externalities.  As to land use impacts, the spread-out, monadic,
anti-community development patterns that we get from our automobile fetish
have profound consequences on our society in that they come deeply to affect
how we see the world, our responsibilities as consumers of the planet, our
responsibilities as citizens, and our capacity for empathy toward those
creatures not a part of our monadic cell.  As to resource externalities, it
would be contentious, but I think no less true, to count among these
externalities a very large proportion of our annual military expenditures
and the extraordinary global costs -- in terms of destabilization, the
undermining of self-determination and promotion of oppressive governments
around the world, environmental destruction, and opportunity costs of
resisting a more sustainable model for human society -- of our desperate and
never-ending effort to maintain our access to as much of the globe's
petroleum as we possibly can.

On the surface, this seems far afield from Mr. Brauer's exhortation to keep
the costs "as local as possible."  But every mile we drive here in the Twin
Cities generates an incremental portion of these vast costs.  In the studies
that actually include just a modest part of our military budget in external
driving costs, the impact on the per-mile figure is substantial and begins
to dwarf the numbers suggested above.  That these costs are impossible to
quantify with any precision does not make them any less real or any less
relevant to our decisions as to the path of our society.

Chuck Holtman
Prospect Park   

------------------------------

Message: 2
Date: Wed, 10 Mar 2004 11:03:10 -0600
From: David Brauer <[EMAIL PROTECTED]>
Subject: Re: [Mpls] RE: Mass Transit and Congestion
To: [EMAIL PROTECTED]
Message-ID: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset=US-ASCII; format=flowed


On Mar 10, 2004, at 10:52 AM, Chuck Holtman wrote:
>
>
> Driving is vastly underpriced (subsidized) and therefore vastly
> overconsumed.  Welfare Economics 101.  The only cure for congestion is 
> the
> proper pricing of driving.  If driving is priced properly, over time,
> development patterns reflect the actual costs of transportation and 
> become
> more compact, and transit becomes steadily more cost-effective than a
> single-occupancy-vehicle-based transportation system.
>
Perhaps this has already been discussed, but I'd like it distilled:

Given that both driving and busing are subsidized, what is the subsidy 
for each? Probably should be expressed as a percent of cost. As local 
as you can make the figures.

Thanks,
David Brauer
Kingfield



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