Transport Economics - Externalities


In addition to providing benefits to their users, transport networks impose both positive and negative externalities on non-users. The consideration of these externalities - particularly the negative ones - is a part of transport economics.

Positive externalities of transport networks may include the ability to provide emergency services, increases in land value and agglomeration benefits. Negative externalities are wide-ranging and may include local air pollution, noise pollution, light pollution, safety hazards, community severance and congestion. The contribution of transport systems to potentially hazardous climate change is a significant negative externality which is difficult to evaluate quantitatively, making it difficult (but not impossible) to include in transport economics-based research and analysis.

Congestion is considered a negative externality by economists. An externality occurs when a transaction causes costs or benefits to third party, often, although not necessarily, from the use of a public good. For example, manufacturing or transportation cause air pollution imposing costs on others when making use of public air.

Read more about this topic:  Transport Economics

Other articles related to "externalities":

Excess Burden Of Taxation - Deliberate Distortion
... all distortions are bad Pigovian taxes create distortions that correct for externalities and therefore have a negative MCF ... Here, the fiscal distortion is deliberate, so as to compensate for externalities ... the price to the exact level that the market would bear if the negative externalities were included in the price ...
Energy Subsidies - Externalities
... affordable.” Those subsidies take many forms, but the most significant are their “externalities.” Externalities are real costs, but they are ...
Expenditure Cascades - Positional Externalities
... Expenditure cascades employ positional externalities, which may relate differently than other types of externalities ... Positional Externalities also have an effect on an individual’s happiness ...
Attention Economy - Applications - Controlling Information Pollution
... example air and water pollution are ‘negative’ externalities which impose burdens on society and the environment ... A market-based approach to controlling externalities was outlined in Ronald Coase's The Problem of Social Cost (Coase 1960) ... Coase's approach to the management of externalities requires the careful specification of property rights and a set of rules for the initial allocation of the rights ...
Fiscal Multiplier - Criticisms - Externalities
... fiscal multipliers can lead to the neglect of externalities such as environmental degredation, unsustainable resource depletion or social consequences ... on activities with high fiscal multiplication values which create negative externalities (pollution, climate change, resource depletion, etc.) or through decreased spending on activities which ...