This paper uses 1990-91 data to classify and estimate the social costs of motor vehicle use in the USA. Its analysis is intended to inform general decisions about pricing, investment, and research. It provides a conceptual framework for analysing social costs, which are broadly divided into operating costs and the value of all capital. The costs of motor vehicle use are classified as follows: (1) personal nonmonetary (unpriced) costs of using motor vehicles; (2) explicitly priced private sector vehicles and services for vehicles, net of producer surplus, taxes, and fees; (3) bundled (implicitly priced) private sector facilities, including parking and private roads; (4) public infrastructure and ices for using motor vehicles; (5) (unpriced) monetary externalities; and (6) (unpriced) nonmonetary externalities. Some initial detailed estimates are given for some of the costs. A social cost analysis cannot provide precise recommendations about how to improve the motor vehicle system, which has several types of inefficiencies and economically optimal measures. A total social cost analysis contributes only modestly to determining economic efficiency, which is only part of the solution, Society has other transport objectives, including equity, opportunity, and justice.
Abstract