Transport Economics - Externalities

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

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Excess Burden Of Taxation - Deliberate Distortion
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Attention Economy - Applications - Controlling Information Pollution
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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 ...