Thursday, April 9, 2009

Economics of automobile usage


Compared to other popular modes of passenger transportation, especially buses, the automobile has a relatively high cost per person-kilometre traveled [1]. Nevertheless demand for automobiles remains high and inelastic in rich nations [2], suggesting that its advantages, such as on-demand and door-to-door travel, are highly prized, despite recent increases in fuel costs, and not easily substituted by cheaper alternative modes of transport, with the present level and type of auto specific infrastructure in the countries with high auto usage.
Public costs related to the automobile are several; effects related to emissions have received a lot of attention, however the impact of manufacturing and disposal is less well-understood.

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