Transport economics Transport economics An externality occurs in economics when a decision (for example, to pollute the atmosphere) causes costs or benefits to stakeholders other than the person making the decision. In other words, the decision-maker does not bear all of the costs or reap all of the gains from his action. As a result, in a competitive market too much or too little of the good will be consumed from the point of view of society. If the world around the person making the decision benefits more than he does (education, safety), then the good will be underconsumed by individual decision makers; if the costs to the world exceed the costs to the individual making the choice (pollution, crime) then the good will be overconsumed from society's point of view. ...more on Wikipedia about "Externality"
A fuel tax (also known as a petrol tax, gasoline tax, gas tax or fuel duty) is a sales tax imposed on the sale of fuel. In the United States, the funds are dedicated or hypothecated to transportation, or even roads, so that the fuel tax is considered by many a user fee. In other countries, the fuel tax is a source of general revenue. ...more on Wikipedia about "Fuel tax"
Hypothecation is a pledge of property as security for a debt without transfer of possession. ...more on Wikipedia about "Hypothecation"
Induced demand is the phenomenon that after supply increases, more of a good is consumed. This is entirely consistent with the economic theory of supply and demand, however has become important in the debate over the expansion of transportation systems. ...more on Wikipedia about "Induced demand"
Induced travel demand is an increase in demand for transportation caused by increased freeway or street capacity. ...more on Wikipedia about "Induced travel demand"
The Lewis-Mogridge Position was formulated in 1990. It captures the observation that the more roads are built, the more traffic there is to fill these roads. Speed gains from new roads tend to disappear within months if not weeks. Sometimes new roads do help to reduce traffic jams, but in most cases the congestion is only shifted to another junction. ...more on Wikipedia about "Lewis-Mogridge Position"
The network effect causes a good or service to have a value to a potential customer dependent on the number of customers already owning that good or using that service. Metcalfe's law states that the total value of a good or service that possesses a network effect is roughly proportional to the square of the number of customers already owning that good or using that service. ...more on Wikipedia about "Network effect"
Road pricing is a generic term for charging for the use of roads using direct methods, charging the users of a specific section of the road network for its use. Examples include traditional methods using toll booths such as turnpikes and toll roads, as well as more modern schemes employing electronic toll collection such as the (2003) London Congestion Charge, Singapore's Electronic Road Pricing, the Trondheim Toll Scheme, the Highway 407 bypass of Toronto, Ontario and high-occupancy toll lanes (such as SR-91 in Orange County, California and Interstate 15 in San Diego, California). It is in contrast to indirect charges such as gas taxes, or other types of taxes. ...more on Wikipedia about "Road pricing"
Transport economics is a cross-disciplinary study linking civil engineering and economics. Transport economics differs from some other branches of economics in that the assumption of a spaceless, instantaneous economy does not hold. People and goods flow over networks at certain speeds. Demands peak. Advanced ticket purchase is often induced by lower fares. The networks themselves may or may not be competitive. A single trip (the final good from the point-of-view of the consumer) may require bundling the services provided by several firms, agencies and modes. ...more on Wikipedia about "Transport economics"
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