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Pricing Freight Transport to Account for External Costs: Working Paper 2015-03

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  • David Austin

Abstract

Although freight transport contributes significantly to the productivity of the U.S. economy, it also involves sizable costs to society. Those costs include wear and tear on roads and bridges; delays caused by traffic congestion; injuries, fatalities, and property damage from accidents; and harmful effects from exhaust emissions. No one pays those external costs directly—neither freight haulers, nor shippers, nor consumers. The unpriced external costs of transporting freight by truck (per ton-mile) are around eight times higher than by rail; those costs net of existing

Suggested Citation

  • David Austin, 2015. "Pricing Freight Transport to Account for External Costs: Working Paper 2015-03," Working Papers 50049, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:50049
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    File URL: https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/workingpaper/50049-Freight_Transport_Working_Paper-2.pdf
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    Citations

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    Cited by:

    1. Tamannaei, Mohammad & Zarei, Hamid & Rasti-Barzoki, Morteza, 2021. "A game theoretic approach to sustainable freight transportation: Competition between road and intermodal road–rail systems with government intervention," Transportation Research Part B: Methodological, Elsevier, vol. 153(C), pages 272-295.
    2. Martine Mostert & Sabine Limbourg, 2016. "External Costs as Competitiveness Factors for Freight Transport — A State of the Art," Transport Reviews, Taylor & Francis Journals, vol. 36(6), pages 692-712, November.
    3. James Mlimbila & Ulingeta O. L. Mbamba, 2018. "The role of information systems usage in enhancing port logistics performance: evidence from the Dar Es Salaam port, Tanzania," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-20, December.
    4. Wang, Haoqi & Zhang, Siduo & Bi, Xiaotao & Clift, Roland, 2020. "Greenhouse gas emission reduction potential and cost of bioenergy in British Columbia, Canada," Energy Policy, Elsevier, vol. 138(C).
    5. Muehlenbachs, Lucija & Staubli, Stefan & Chu, Ziyan, 2021. "The accident externality from trucking: Evidence from shale gas development," Regional Science and Urban Economics, Elsevier, vol. 88(C).

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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