Transportation Cost and Benefit Analysis - Resource Consumption Externalities

Transportation Cost and Benefit Analysis - Resource Consumption Externalities Transportation Cost and Benefit Analysis II – Resource Consumption External Costs Victoria Transport Policy Institute (www.vtpi.org) 5.12 Resource Consumption External Costs This chapter describes external costs of transport resource (particularly petroleum) production, processing and distribution, and therefore the soci. [...] Although newer policies and practices are intended to reduce and mitigate these impacts, there are significant residual damages, and many impacts are likely to increase as depletion of relatively accessible oil fields requires development of deep ocean wells and alternative fuels such as tar sands and oil shales. [...] economy $150-$250 billion in 2005, and a total of $5 to $13 trillion (constant 2000 dollars) between 1970 and 2005.58 These costs are relatively evenly divided between transfer of wealth from the United States to oil producing countries, the loss of economic potential due to oil prices elevated above competitive market levels, and disruption costs caused by sudden and large oil price movements. [...] Low taxes increase fuel use and vehicle travel.80 Various studies indicate the elasticity of fuel consumption with respect to fuel price is -0.1 to -0.3 in the short-run and -0.5 to -0.8 in the long-run, so a 10% price increase reduces consumption 1-3% in the short run and 5-8% over the long run.81 Low fuel taxes help explain why North American per capita fuel consumption is more than twice most o. [...] Papers in this series: Untold Billions: Fossil-Fuel Subsidies, Their Impacts And The Path To Reform: Summary Of Key Findings Effects Of Fossil-Fuel Subsidy Reform: A Review Of Modelling And Empirical Studies The Politics Of Fossil-Fuel Subsidies Strategies For Reforming Fossil-Fuel Subsidies: Practical Lessons From Ghana, France And Senegal Gaining Traction: The Importance Of Transparenc.