Transportation decisions are affected by the distribution of costs. Consumers are most influenced by internal, variable costs. Transportation planners and policy makers are most influenced by direct market costs because they are easiest to measure. Fixed, non-market and indirect costs tend to be undervalued, which can lead to economic inefficiency and inequity. This article summarises current research on total North American roadway transportation costs, including non-market environmental and social costs. The results indicate that automobile use is significantly underpriced, resulting in overconsumption and inefficient use of resources. The implications on sustainability criteria (economic efficiency, equity, environmental impacts, and land use patterns) are discussed. Recommendations are provided for incorporating total costs analysis in transport planning and policy analysis for better decision making. (Author/publisher)
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