External costs of intercity truck freight transportation

Abstract

From a societal perspective, it is desirable for all transportation users to pay their full social (private and external) costs. We estimate four general types of external costs for intercity freight trucking and compare them with the private costs incurred by carriers. Estimated external costs include: accidents (fatalities, injuries, and property damage); emissions (air pollution and greenhouse gases); noise; and unrecovered costs associated with the provision, operation, and maintenance of public facilities. The analysis reveals that external costs are equal to 13.2% of private costs and user fees would need to be increased about threefold to internalize these external costs.