Automobile: Economics and Impacts

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Cost and benefits of ownership

The costs of automobile ownership, which may include the cost of: acquiring the vehicle, repairs, maintenance, fuel, depreciation, parking fees, tire replacement, taxes and insurance, are weighed against the cost of the alternatives, and the value of the benefits - perceived and real - of vehicle ownership. The benefits may include personal freedom, mobility, independence and convenience.

Cost and benefits to society

Similarly the costs to society of encompassing automobile use, which may include those of: maintaining roads, pollution, public health, health care, and of disposing of the vehicle at the end of its life, can be balanced against the value of the benefits to society that automobile use generates. The societal benefits may include: economy benefits, such as job and wealth creation, of automobile production and maintenance, transportation provision, society wellbeing derived from leisure and travel opportunities, and revenue generation from the tax opportunities. The ability for humans to move rapidly from place to place has far reaching implications for the nature of our society. People can now live far from their workplaces, the design of cities can be determined as much by the need to get vehicles into and out of the city as the nature of the buildings and public spaces within the city.

Impacts on society and environment

Transportation is a major contributor to air pollution in most industrialised nations. According to the American Surface Transportation Policy Project nearly half of all Americans are breathing unhealthy air. Their study showed air quality in dozens of metropolitan areas has got worse over the last decade. In the United States the average passenger car emits 11,450 lbs (5 tonnes) of carbon dioxide, along with smaller amounts of carbon monoxide, hydrocarbons, and nitrogen. Residents of low-density, residential-only sprawling communities are also more likely to die in car collisions, which kill 1.2 million people worldwide each year, and injure about forty times this number. Sprawl is more broadly a factor in inactivity and obesity, which in turn can lead to increased risk of a variety of diseases.

Improving the positive and reducing the negative impacts

Fuel taxes may act as an incentive for the production of more efficient, hence less polluting, car designs (e.g. hybrid vehicles) and the development of alternative fuels. High fuel taxes may provide a strong incentive for consumers to purchase lighter, smaller, more fuel-efficient cars, or to not drive. On average, today's automobiles are about 75 percent recyclable, and using recycled steel helps reduce energy use and pollution. In the United States Congress, federally mandated fuel efficiency standards have been debated regularly, passenger car standards have not risen above the 27.5 miles per gallon standard set in 1985. Light truck standards have changed more frequently, and were set at 22.2 miles per gallon in 2007. Alternative fuel vehicles are another option that is less polluting than conventional petroleum powered vehicles.