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Impacts of Motor Vehicle Operation on Water Quality in the United States - Clean-up Costs and Policies

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  • Nixon, Hilary
  • Saphores, Jean-Daniel

Abstract

This paper investigates the costs of controlling some of the environmental impacts of motor vehicle transportation on groundwater and on surface waters. We estimate that annualized costs of cleaning-up leaking underground storage tanks range from $0.8 billion to $2.1 billion per year over ten years. Annualized costs of controlling highway runoff from principal arterials in the US are much larger: they range from $2.9 billion to $15.6 billion per year over 20 years (1.6% to 8.3% of annualized highway transportation expenditures.) Some causes of non-point source pollution were unintentionally created by regulations or could be addressed by simple design changes of motor vehicles. A review of applicable measures suggests that effective policies should combine economic incentives, information campaigns, and enforcement, coupled with preventive environmental measures. In general, preventing water pollution from motor vehicles would be much cheaper than cleaning it up.

Suggested Citation

  • Nixon, Hilary & Saphores, Jean-Daniel, 2007. "Impacts of Motor Vehicle Operation on Water Quality in the United States - Clean-up Costs and Policies," University of California Transportation Center, Working Papers qt4bv8v8gj, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt4bv8v8gj
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    References listed on IDEAS

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    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. Pamela R. D. Williams & Laurie Benton & Patrick J. Sheehan, 2004. "The Risk of MTBE Relative to Other VOCs in Public Drinking Water in California," Risk Analysis, John Wiley & Sons, vol. 24(3), pages 621-634, June.
    3. R. Scott Farrow & Martin T. Schultz & Pinar Celikkol & George L. Van Houtven, 2005. "Pollution Trading in Water Quality Limited Areas: Use of Benefits Assessment and Cost-Effective Trading Ratios," Land Economics, University of Wisconsin Press, vol. 81(2).
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