Urban car transportation is a cause of climate change but is also associated with additional burdens such as traffic congestion and air pollution. Studies of external costs and potential impacts of travel demand management help to define policy instruments that mitigate the damaging impact of transportation. Here, we analyze different externalities of car transportation in Beijing and show that social costs induced by motorized transportation are equivalent to about 7.5-5.0% of Beijing' GDP. Congestion and airpollution contribute the most with climate change costs being the most uncertain. We show that a road charge could not only address congestion but also has environmental benefits. The paper investigates the role of demandelasticities and demonstrates that joint demand and supply-side policies provide considerable synergies. (A) Reprinted with permission from Elsevier.
Abstract