Automobile Dependency and Economic Development

Abstract

Automobile dependency consists of high levels of per capita automobile travel, automobile oriented land use patterns and limited transport alternatives. Automobile dependency has many impacts on consumers, society and the economy. It increases mobility and convenience to motorists. It increases consumers' transportation costs and resource consumption, requires significant financial and land resources for roads and parking facilities, and it increases traffic congestion, roadway risk and environmental impacts. It reduces the viability of other travel modes and leads to more dispersed land use and mobility intensive economic patterns that require more vehicle travel for access. This paper examines macroeconomic impacts of automobile dependency (impacts on overall economic development, productivity, competitiveness and employment). Both economic theory and empirical evidence indicates that excessive automobile dependency reduces economic development. Several current market distortions result in automobile dependency beyond what is economically optimal. Policies that encourage more efficient transportation and land use patterns can provide economic benefits.

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