Automobile Dependency and Economic Development

Automobile dependency is defined as high levels of per capita automobile travel, automobile oriented land use patterns and reduced transport alternatives.1 The opposite of automobile dependency is a balanced transportation system with more mixed travel patterns. Automobile dependency is a matter of degree.2 In its extreme, nearly all local trips are made by personal automobile because alternatives are so inferior. To experience automobile dependency, forego driving for a few typical weeks. In a highly automobile dependent community you will encounter significant problems - you may have trouble commuting, running errands, and even crossing busy streets. In a community with balanced transportation you will have fewer problems. Some people suggest that automobile dependency always increases as consumers become wealthier,3 but this is not necessarily true. Many wealthier regions have balanced transportation systems while some poorer regions are quite automobile dependent.4 The differences result from public policies that affect transport choices and land use patterns.5 This paper investigates the macroeconomic effects of automobile dependency, that is, its impacts on regional economic development (productivity, competitiveness and employment), and conversely the economic impacts of a more balanced transport system. This is important because transportation is itself a major economic sector and impacts virtually all other sectors. Public policies influence transportation choices and activities in various ways. Many current policies favor automobile dependency, including public expenditures on roads and traffic services, abundant parking requirements, favorable pricing policies, and land use scaled for automobile travel. These policies reflect an assumption that increased automobile use provides economic benefits and reflects consumer demand. However, evidence described in this paper suggests that current market distortions result in excessive automobile dependency which reduces economic development, that alternative policies which encourage more balanced transportation can increase economic development, and in response to such reforms, consumers would choose to drive significantly less and be better off overall as a result.

Economic Development Impacts of Automobile Dependency

Automobile dependency has various impacts that affect economic development.6 These are summarized below and some are discussed in detail later in this paper. 1. Increased Mobility And Convenience For Motorists Automobile dependency directly benefits vehicle users: favorable pricing, investment, facility design, parking and land use practices make driving relatively fast, convenient and affordable. It also allows businesses to use more centralized distribution systems and Just-In-Time production, and to access a wider range of possible employees and customers, which can cause certain types of agglomeration efficiencies, such as large retail centers. These savings and efficiencies can increase economic development if they increase the productivity of local industries. These productivity benefits are separate and in addition to consumer benefits from increased mobility. However, not all increased vehicle use by producers represents increased productivity. As discussed later in this paper, automobile dependent transportation systems and land use patterns require more travel to provide a given level of services. 2. Increased Vehicle And Fuel Expenditures Automobile dependency increases per capita vehicles and fuel expenditures, often increasing average annual household transportation expenditures by thousands of dollars, and reduces expenditures on other consumer goods. This can have significant economic impacts, particularly because most vehicles and fuel are imported from other regions.download