Transportation Market Distortions - A Survey - 2 January 2023 Abstract

1 Transportation Market Distortions Victoria Transport Policy Institute Market Principles and Distortions This section examines in detail individual market principles, the degree to which they are reflected in current transportation markets, and various types of market distortions. [...] Fuel is exempt from general taxes in many jurisdictions, land devoted to public roads and parking facilities is exempt from rent and taxes, and petroleum producers are given significant tax exemptions and subsidies (Litman 2009; Delucchia and Murphy 2008). [...] Neutral transport Transport planning and Planning that evaluates Apply more comprehensive planning (planning and investment practices transport system performance and multi-modal evaluation investment decisions that favor automobile- based primarily on automobile practices which expand the should not arbitrarily oriented improvements travel conditions, and scope of impacts and favor one mode or (w. [...] Transaction Costs Some degree of underpricing is justified due to transaction costs (costs to governments and businesses of collecting fees and costs to motorists of paying fees). [...] Market distortions favoring automobile travel and sprawl tend to reduce travel options and land use accessibility, which harms non-drivers and reduces transport system efficiency.