Transportation market reforms for sustainability

The potential of using market-based reforms to address economic, social, and environmental problems associated with transportation is explored. Various transport-market distortions are identified and discussed, and strategies to reduce the distortions are described. Several technically feasible strategies are identified that increase consumer choice and encourage more efficient use of transportation resources. These are called "win-win transportation solutions." Three packages of state-level market reforms are evaluated for their impacts on vehicle travel, emissions, congestion, consumer expenses, tax revenue, and equity. The proposed reforms represent "no regrets" actions that are cost-effective and justified for their direct economic benefits while also achieving social and environmental objectives. This approach is particularly important for sustainable transportation. Win-win solutions are predicted to meet Kyoto emission-reduction targets, increase economic productivity and competitiveness, provide net benefits to consumers, and increase overall equity, while helping solve common transportation problems such as traffic congestion and facility costs.