This paper considers that if energy conservative land use and transportation planning and management is to be achieved, energy must be introduced into the planning process by setting oil-based transport fuel at a price level such that long-run marginal social cost (LRMSC) is equal to long-run marginal social revenue (LRMSR), a necessary condition for correct economic use of transport energy resources. Furthermore, the paper proves that drivers are currently misperceiving the cost of running their vehicle. In the case of fuel prices, drivers perceive only one-third of real costs. This misperception must be corrected in order to conserve resources. It suggested that an idealised land use and transport plan can be developed on the basis of setting oil-based transport energy at a price level that LRMSC = LRMSR and correcting drivers' misperception. Research is suggested to evaluate both theses latter values. A meter is proposed as a possible measure to correct motorists' misperception of a carrunning cost. If proved effective in practical testing, all vehicles should be required to have such devices. Idealised land use and transport solutions will be helpful in selecting land use and transport systems that van operate in an energy conservative way. This idealised solution will also act as an objective measure against which existing land use plans and transportation system performance can be measured and appropriate action taken to correct misuse. Detailed practical measures are suggested in both land use and transportation to move present imperfect energy use toward a more efficient use that will have been identified in the idealised analysis. (A)
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