Benefits of different transport modes

REPORT OF THENINETY-THIRD ROUND TABLE ON TRANSPORT ECONOMICS held in Lyons on 30th June-1st July 1992 on the following topic: BENEFITS OF DIFFERENT TRANSPORT MODES... The matters general

ECONOMIC RESEARCH CENTRE

REPORT OF THE

NINETY-THIRD ROUND TABLE

ON TRANSPORT ECONOMICS

held in Lyons on 30th June-1st July 1992

on the following topic:

BENEFITS OF DIFFERENT TRANSPORT MODES

OF MINISTERS OF TRANSPORT (ECMT)

The European Conference of Ministers of Transport (ECMT) is an inter-governmental organisation established by a Protocol signed in Brussels on 17th October 1953 The Council

of the Conference comprises the Ministers of Transport of 30 European countries1 The work

of the Council of Ministers is prepared by a Committee of Deputies.

The purposes of the Conference are:

a) to take whatever measures may be necessary to achieve, at general or regional level, the most efficient use and rational development of European inland transport of international importance;

b) to co-ordinate and promote the activities of international organisations concerned with European inland transport, taking into account the work of supranational authorities in this field.

The matters generally studied by ECMT and on which the Ministers take decisions include: the general lines of transport policy; investment in the sector; infrastructural needs; specific aspects of the development of rail, road and inland waterways transport; combined transport issues; urban travel; road safety and traffic rules, signs and signals; access to transport for people with mobility problems Other subjects now being examined in depth are: the future applications of new technologies, protection of the environment, and the integration of the East European countries in the European transport market Statistical analyses of trends in traffic and investment are published each year, thus throwing light on the prevailing economic situation.

-The ECMT organises Round Tables and Symposia Their conclusions are considered by the competent organs of the Conference, under the authority of the Committee of Deputies, so that the latter may formulate proposals for policy decisions to be submitted to the Ministers.

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1 Austria, Belgium Bosnia-Herzegovina, Bulgaria Croatia, the Czech Republic Denmark Estonia, Finland, France, Germany Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, the Slovak Republic Slovenia, Spain Sweden Switzerland, Turkey and the United Kingdom (Associate Member countries: Australia, Canada, Japan, New Zealand, the Russian Federation and the United States Observer countries: Moldova, Morocco.)

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TABLE RONDE 93

© ECMT, 1994

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Professor Rainer WILLEKE

Koln University

Koln

Germany

1 INTRODUCTION 9

2 THE POSITION OF TRANSPORT AND THE TRANSPORT

3 THE MAIN PERFORMANCE CHARACTERISTICS OF THE

4 THE PERFORMANCE ADVANTAGES OF ROAD TRANSPORT 18

6 EXTERNAL BENEFITS OF ROAD TRANSPORT: CRITICISM

1.1 The problem

To examine the benefits and advantages of transport and the differenttransport modes is highly topical and relevant, but also somewhat unusual,because the impetus for interest in the subject comes from the other side, that ofthe private and social costs of transport The explosive expansion of passengerand freight transport has caused high and rising levels of disamenity andenvironmental pollution wherever there is a substantial volume of transportoperations At the same time, individual and political sensitivity to the nuisanceand damage caused by transport is growing This has led to critical andfrequently hostile attitudes to transport and its further growth In one economicargument, this criticism often takes the form of the thesis that transport is simplytoo cheap, because the provision of transport services by no means takes account

of all the costs and the polluter is not made to pay; the acceptance of the externalcosts is a hidden subsidy to transport users and has artificially encouraged theformation of transport-hungry settlement structures (suburbanisation) andparticularly transpor-intensive production and distribution systems (thejust-in-time concept)

Although the criticism of excessive waste of resources is often directed attransport as a whole, and although major transport infrastructure projects of alltypes come up against opposition, the critical attitude and accusations of

uncovered social costs are directed above all at road traffic and the internal

combustion engine A whole series of social cost calculations have tried to provequantitatively that motor traffic, both in absolute terms and relative to othertransport modes, causes particularly high social costs that are nowhere nearcompensated for by special charges [1],

The methodological basis for social cost calculations is still somewhat shaky,however, and the results vary enormously They nevertheless have increasinginfluence on the transport policy debate and opinion-forming The political andscientific arguments over the methods and results of social cost calculations have

also led, however, to a reconsideration of the benefits and advantages of transportand of the different transport modes One-sidedness in the handling of costs andbenefits was admittedly noted some time ago, but there are as yet very few worksthat deal with and analyse the subject of the benefits of transport and the differenttransport modes in a way that corresponds to the handling of costs and, above all,the external costs This is especially true of the question of whether there are, infact, any external benefits of transport and whether they can be meaningfully

identified and measured, so that at last a real balance sheet of total benefits and

total costs can be drawn up

In the handling of the problem so far, there is also further asymmetry, sincefor certain aspects of transport it is standard practice to assume that there areadditional social benefits Thus in the case of urban public transport, notably inthe big cities and conurbations, it is asserted that the service provided goes aboveand beyond the transport benefit for the individual passenger in exchange for thefare paid, since it provides a mobility and structuring benefit for the community

as a whole Positive external effects could therefore justify public willingness topay for investment financing and for covering the operating deficit A similarargument is often used with respect to the railways, at least as regards networkinvestment and local and regional passenger services If we look more closely,

we see that the one-sidedness recognising the external costs but not the externalbenefits - is mainly restricted to motorised road traffic, though this is not always

clearly stated

In what follows we seek to derive the benefits brought by transport and theindividual transport modes - notably road and rail - from their economicfunctions In so doing we stress the dynamic functions that bring about theextension of markets and intensification of the spatial division of labour This

analysis shows that in addition to the benefits internalised in market relations, for

which the beneficiaries pay an appropriate price, there are external benefits forother economic actors and for the economy as a whole The problem thusformulated means that the field of freight transport is dealt with more extensively

than passenger transport

The concept of benefit - in the technical sense of "utility" - is one of the

essential, but at the same time confusing and not very practicable, concepts of

economic science According to the neo-classical marginal analysis, benefit is asubjective intensity parameter in consumption planning, that allows no cardinalmeasurement and no inter-personal comparison We shall only just touch uponthis formulation of the concept, however, as when we talk of the benefit of

mobility for individuals and private households and "consumer surpluses".Generally speaking, however, we shall use a broader and more pragmaticinterpretation of the concept, notably when discussing the importance of transportand the different transport modes for the level of performance and growth

capacity of economic systems The concept here is that of "benefit to theeconomy as a whole", as is in fact usual in cost-benefit analyses This parallel

is only partial, however, because cost-benefit analyses relate to planning projects

that can be delimited and where a "with" and "without" situation can be

formulated Such an approach, which presupposes specific segments of a partial

analysis, is clearly inadequate when considering the benefits of transport and thedifferent transport modes for the economic and social system as a whole It

would, for example, be pure speculation to try to assess the significance ofgrowing car ownership by comparing the actual development over the past fortyyears with a "without" case We therefore need to stick more closely lo theobjective facts of economic efficiency and growth capacity The more obviousobjections will be dealt with The problems that arise with the possible existence

of "social" or "external" benefits of transport form a substantial part of this paper

In very general terms, the benefits of transport services lie in improvement

in economic relations brought about by the spatial transfer of persons, goods and

information [2] The provision of transport services requires the use of scarcefactors of production; it is therefore desirable and justifiable only if the costs are

at the very least equalled by the benefits In principle, the same optimal factor

allocation requirements apply as in other branches of production

The use of this very general formulation leads to certain difficulties,however These begin already with the division between passenger and freight

transport A large and growing proportion of passenger transport is eitherconsumption itself or a direct precondition for consumption; we are thinking here

of the greatly expanding leisure traffic Another part of passenger transport isclosely connected with production (commuter and business traffic) Here there

is often a mixture of direct and derived benefits however In the case of freighttransport on the other hand it is perfectly clear that transport is not an end in

itself, but a means to an end Demand for transport services is derived from thelocalised demand for the transported objects.

In addition to this breakdown by purpose, there is the alternative of eitherbuying transport services or producing one's own In the case of passengertransport, the second alternative has taken on enormous importance as a result ofgrowing car ownership, but in freight transport too, own-account transport plays

an important role both as a practice and as a possibility Own vehicles aregenerally used by service, construction and repair enterprises

The use of own vehicles can cause problems for the full play of marketforces and the calculation of costs and benefits Thus, for example, in the case

of private cars there are often "irrational" benefit elements together withunderestimation of the costs In the case of own-account transport, too, there are

claims that the firms concerned do not take sufficient account of the economics

of the operation, but allow tradition and prestige considerations to influence thedecision These judgements, which partly stem from too narrow an interpretation

of the concepts of costs and benefits, are not of particularly great importance, but

it should be noted that they do enter the political debate

Of particular importance for the completeness of the economic calculationand for the efficiency of factor allocation in the competitive, system, however isthe appearance of "social costs" Social or external costs arise when productionprocesses or consumer behaviour lead to a consumption of value of the scarceresources of production or consumption that is not borne or compensated for

by the party responsible but by others, individuals or groups of economic actors.There is now not only a considerable body of analytical and theoretical works onthe social costs of transport and of individual transport modes, but also a rapidlygrowing though as yet still controversial volume of empirical material

There is some dispute, on the other hand, about whether a correspondingdivision is possible on the benefit side and whether it is relevant with respect tothe allocation of the factors of production and to modal split If the answer is

"yes", then the total benefits of transport services are made up of internal andexternal benefits Internal benefits comprise the advantages assessed and paid for

by transport users, while external benefits are the advantages accruing to othereconomic actors or to the community as a whole, and for which they do not pay

the provider [3]

IN ECONOMIC DEVELOPMENT

Reliably functioning transport links are among the basic structuralpreconditions for any economic system with a spatial division of labour Theprovision and use of transport services thus form a necessary part of theproduction and exchange system For an analysis of the interrelationshipsbetween economic and transport processes, it is possible to adopt a static or adynamic approach In an equilibrium system with constantly recurringproduction, exchange and consumption processes that take place in the different

locations of an economic space, the transport flows and transport costs are

determined by the interdependence of market relations and market forces Such

an equilibrium in an economic space shows a balance between the advantages ofthe spatial division of labour and the transport costs that have to be accepted.This picture of simultaneous equilibrium in all markets, which explicitly includes

spatial distances and transport costs, is of use mainly as a model, but it does show

the relationships between the economic space, the transport economy and the

associated need to take decisions.

Of much greater informative value than the possible incorporation oftransport processes in an economic equilibrium system, is the dynamic question

of the importance of transport and the individual transport modes for theevolution of the spatial division of labour and locational specialisation as an

impetus and condition for economic growth and social progress

Certain principles of the relationships and processes involved are easyenough to derive Productivity and supply improvements, through the extension

of markets and intensification of the spatial division of labour, can obviously be

achieved only through an increase in transport output Stimuli from the transportside come from transport cost reductions and quality improvements The growingefficiency of transport makes it possible to correspondingly extend the spaces inwhich market relationships exist and to intensify specialisation and exchangewithin these spaces

The importance of transport for opening up new areas and establishing links

within areas has long been recognised and has influenced the policies of statesand groups of states since ancient times Transport and the associated

infrastructures and equipment are obviously particularly highly valued and

encouraged when development, often the fastest possible development of a

territorial, then a national economy, is a priority political goal Early examplesare provided by the roads built throughout the Roman Empire, the expansive trade

policy of the despotic monarchs of the mercantile age and the canal and portbuilding in the 18th century, which enabled England and to some extent France

to take the first steps towards industrialisation The technical and economic

preconditions for sweeping and constantly growing economic integration,however, came only with the appearance of steam-powered bulk transport modes,above all the establishment of railway links and rail networks The basicconceptual importance of the deliberate use of the railway as an instrument ofregional and national development strategy in Germany and the United States was

shown by the ideas and proposals of Friedrich List

If we look at the interrelationships between the development of industry and

transport over the long term since the industrial revolution, we can see a

characteristic sequence of phases that indicate a certain regularity of productionand market development Colin Clark's use of the goods category model or JeanFourasti£'s better known production sector model show significant dependenciesand links between production growth and structural change that also make itpossible to say something about the corresponding developments in transport [4]

The predominance of the primary method of production, determined byagriculture, lasted until the revolution in production and transport technologiesduring the 19th century With the introduction of the steam engine, the industrial

production of goods was able to come to the fore, but it was not until the

development of the new steam-powered transport modes that markets could beextended enough to permit mass production There was first a wide-ranging anddensely meshed economic integration with the inherent dynamic for continuingexpansion and intensification An even greater impetus for growth than the

steamship, which formed a secure basis for intercontinental links, was the

development of rail networks Rail transport can open up the length and breadth

of continents regardless of the watercourses; it makes it possible to form industrialareas and link them together in polycentric patterns with a clear separation of

achieved through the concentration of production in specific locations and the

external advantages of conurbations come into play Despite all the political

obstacles, the national frontiers in Europe in particular could be broken down andthe beginnings of a single market of continental size created As compared withthe later possibilities of motorised road traffic the network building capabilities

of the railways remained very limited, of course but, as compared with thebaseline situation, the railways for the first time formed an efficient transportnetwork, well suited to bulk consignments and able to offer a scheduled service

Above all, the new possibility of regular and inexpensive transport for cheapbulk goods was a prerequisite for the industrial revolution The secondary sector,

If the mutually interdependent developments of production growth, spatialeconomic structure and transport are seen in relation to one another, then,following a suggestion by Andreas Predohl, a functional sequence of periods ofintegration, expansion and intensification can be identified [5] Railways and

steam vessels made it possible for ever bigger economic spaces to grow togetherand become intertwined; they are the instruments of the integration phase

The boundaries between integration, expansion and intensification cannot bedrawn sharply Thus, during the course of the expansion process there is greaterintegration too, and with the intensification of exchange relationships there arefurther growth effects When looking at different countries or groups of countries

we also see big leads and lags This is particularly true with today's transitions

and links between expansion and intensification of the spatial division of labourand the intertwining of the transport economy While in the most industrialised

economies the general growth dynamic, together with the introduction of newtransport technologies and new logistic solutions, makes it possible to havecontinuing differentiation of the services demanded and supplied, manydeveloping countries are still in the stage of spatial integration and agrarian andindustrial growth Here, there has also been a strong regeneration of the railwaynetworks and later, in parallel, the use of new traction technologies (diesel and

electric) in rail transport and shipping and the now fully developed road, pipelineand air transport technologies

THE MAIN PERFORMANCE CHARACTERISTICS OF THE

DIFFERENT TRANSPORT MODES

Modern transport systems are extraordinarily multifaceted; they include theservices of many transport modes, whose production, cost and market conditions

are very different Because of their technical and economic properties thedifferent modes have specific service focuses and affinities to certain transporttasks that form the basic structure for the division of labour Despite this

specialisation, however, there are many overlapping fields with substitutionpossibilities and more or less intense substitution competition

The performance of the different transport modes can be ranked according

to certain requirements: they are required to be reliable, safe, rapid and

inexpensive The various modes possess these qualities to differing extents and

in different proportions The individual modes tend to have a combination of

specific aptitude profiles that correspond to the requirement profiles of differentbuyers of transport services In the supply of transport services, it is not only thetechnical properties that count, but also the organisational possibilities includingtransport chains and full service packages - which are playing an increasinglyimportant role These are the preconditions for the overall logistic planning ofthe function fields of procurement, production, storage and distribution.

For industry and society the economic, technical and organisational variety

of transport services and openness to new services and combinations of servicesare of the greatest importance The logistic supply is thus able to meet ever moreprecisely the demands of shippers for ever better and increasingly integratedsolutions to their transport needs

If we wanted to look more closely at the national transport system, it wouldobviously be necessary to take account of inland waterway transport and coastalshipping in addition to road and rail transport, as they extend the possibilities andare in competition with the railways for some traffics The same is true of somepipeline links, where overcapacities could increase interest in taking over suitablebulk traffics Lastly, air transport at the concentration points of further growth

continues to cause unsolved market regulation and investment planning problems

However, the focus for the co-ordination tasks and the crux of the transport policy

debate - including the question of the external effects - remains motor traffic

and the railways, with their competition, substitution and co-operation

relationships We shall therefore concentrate on these two modes

The system properties of the railways offer attractive cost and qualityconditions as compared with road transport for bulk consignments between nodal

points, and the comparative advantage increases with distance The fact that

supply is associated with a timetable and a much less finely meshed network thanthe road network favours the spatial and temporal concentration of demand, butlimits the ability to adjust to customers' wishes when they depart from the

standard The railways are clearly inferior for collection and distribution trafficand more generally for the transport of relatively small quantities over relatively

Such a characterisation of the strong points of road and rail clearly showsthat there is a relationship of complementarity and co-operation Road transportcollects and distributes, serves all points of the area and, thanks to its flexibility,

is able to meet individual needs The transport of large quantities ofhomogeneous goods between nodal points of economic activity, on the otherhand, falls to the railways

This simple basic division of labour has, however, been very much changed

by the economic and social dynamic of the past thirty years, and this to thedisadvantage of the railways A number of interdependent factors were at workhere The continuing increases in productivity and real incomes, together withchanges in demand structures and production methods, changed the spatial andtemporal requirements for the delivery of goods in such a way that road transportbecame the dominant mode The explosive growth of road transport is anindication of new performance standards of predictability and rapidity, but also

of flexible adaptation to the particular requirements of transported goods and thesize of consignments, including the possibility of global logistical planning Therailways have to adapt to these more demanding service requirements They areresponding with product innovations and co-operation, but with only limitedsuccess so far in the freight transport field This is true of the European railways

at least.

In passenger transport too, motor vehicles have become the dominant mode

Individual car ownership corresponds to the rise in real incomes and thedecentralisation of residential areas in new, constantly spreading urban areas Afurther impetus has been the increase in leisure time Over 80 per cent of allpassenger trips in Germany are made by car, but over longer distances therailways have been able to increase their market share over the past few years

The expansionist development of road traffic, however, is meeting withincreasing opposition and criticism and is, in particular, accused of causing

external costs Not taking these costs into account is considered to mean that

road transport services are provided too cheaply, leading to excessively largeproduction This has also led to distortion of competition to the disadvantage ofthe railways In any event, the trends in transport output and market shares areconsidered not to reflect the true benefits of the different transport modes

This kind of argument is being widely accepted, but lacks any clear andwell-established basis for evaluation In the first place, there are still great

methodological weaknesses in the determination of external costs for the

individual cost items and, above all, their aggregation In addition, it is alsonecessary to take into account the fact that the system comparison cannot be madesolely on the basis of a cost comparison The generally implicit assumption thatthe technical transport services are basically of equal value is obviously false.This fiction is today even much less defensible than it was twenty years ago Inaddition to the costs as the sum of the private and social (external) costs, thespecific service advantages need to be taken into account as benefits The criticaland for, the comparison, decisive point is therefore the question of whether inaddition to the private benefits of transport services, for which market prices are

for which their providers receive no reward In order to be able to answer thisquestion it is useful to look more closely at the characteristic service properties

of road transport as compared with those of the railways For in the end it is amatter of being able to estimate the consequences of alternatives

For a long time freight transport by road was essentially a complement to

rail transport Since the sixties, however, the traditional pattern of co-operation

has to a large extent become obsolete The conditions for the division of labour,

and with them the size of market shares, have changed radically While the rail

and road shares of freight traffic in Germany were still 56.0 and 20.3 per centrespectively in 1950, by 1964 the road share (35.9 per cent) was starting toovertake the rail (35.7 per cent) and by 1990 the situation was exactly the reverse

of what it had been in 1950: 56.7 per cent road and 20.6 per cent rail At thesame time, the total inland freight transport output increased from 70.4

to 300.1 billion tonne-kilometres over these forty years [6]

This change at first took place in small steps, induced by the appearance ofchanges in transport needs The shift of production and demand structures in thedirection of higher value goods, the tendency towards the automation of manyproduction processes, together with rationalisation in the combination of transportand storage and the associated reorganisation of location patterns, brought tasksfor the handling of traffic flows that in most cases could be taken over only by

road transport

The particular properties of road haulage permit, above all, a very highdegree of quantitative and qualitative flexibility of supply, making it possible toadjust rapidly to the time, place and quantity requirements of transport demand.This is particularly important in the case of short-term changes in marketconditions and patterns of demand These characteristics also make road transportparticularly well able to fit into transport chains and combinations withcomplementary services (freight forwarding, warehousing, handling, etc.)

However, these service activities can be developed and implemented only because

the technical potential of the vehicles is exploited by private, profit-oriented

enterprises

differences to the technical and institutional performance conditions of therailways If the characteristic changes in production and consumption over thepast thirty years are looked at in connection with the development of the transportsystem, then it is easy to see that the type and intensity of economic growthdepended on the parallel growth of road transport As regards the relationshipbetween road and rail transport, the old complementarity has by no meansdisappeared altogether The carriage of bulk goods between nodal points stillremains the essential nucleus of rail freight transport, while the new markets forrapid and sharply increasing consignments of high- value intermediates and finalproducts - and also virtually all the increase in frontier-crossing traffic - have

so far gone to road haulage [7] The railways' efforts to increase their

competitiveness, through group traffic and much shorter transport times, are onlyslowly becoming effective Even the sometimes considerable successes incontainer traffic and other forms of combined transport remain small in volume

as compared with total traffic

For the further development of the transport system, however, we can expect

further co-operation and in the longer term a more even balance in market shares

The "renaissance of the railways" will not come overnight, however, not even in

the shorter term, and it cannot be achieved through market intervention In the

immediate future, road transport will continue to dominate, firstly because of the

continuing structural changes with effects that tend mainly towards road transport,and secondly because of the requirements of fast and flexible adjustment of

supply to the new spatial constellations of European markets These trends,

however, which in the first place favour road transport, will lead to increasingvolumes of freight running more regularly between new networks of nodal points

This will create the preconditions for grouped consignments and at the same time

economic pressure in this direction will increase Bottlenecks in precisely those

parts of the road networks on which long-distance, high- volume traffic flows are

developing will make it possible to gain an additional cost advantage by using thebulk transport modes Railway undertakings can and should support and

accelerate this development through a resolutely market economy approach intheir production planning

The attention that has recently come to be focused on the benefits and even

possible external benefits of transport is probably explained by reaction to the

intensive treatment of the external costs, but from the scientific standpoint thelong silence about the external benefits of transport is hard to understand.

Marshall's concept of external economies already gives a good start, if it istaken out of the confines of the static approach and interpreted in a broaderdynamic sense [8] This concept then describes the spread of growth-promotinginnovations, which as a rule admittedly arise through specific market transactions,but also for the most part outside the buyer-seller relationship, and thus have anexternal impact Interestingly enough, both Marshall and then Pigou had apenchant for taking examples from the field of transport and communicationswhen talking about external effects [9] The concept of external economies has

so far been particularly fruitful apart from the education and research sectorregional economic analyses of agglomeration and conglomeration processes, inwhich the services of the transport and communications sector play a decisive

role [10]

It is not difficult to link the concept of positive external effects with thecontributions of continental transport economists An outstanding line ofeconomists runs from Friedrich List through Emil Sax to Alfons Schmitt andAndreas Predohl [11] Schmitt formulates the view widely held as early as 1933

as follows:

"Over the past 100 years the world transport system has been in a state ofalmost unbroken revolutionary progress, that has had a much more decisiveinfluence on the nature of the economy than all the changes in the field ofproduction technology, for the combination of the division of labour byindividual firms over ever larger areas [ ] became possible only whensuitable transport provided links between these mutually dependentindividual firms The international division of labour and the worldeconomy are direct products of transport development [ ] Theimprovements in transport have thus not merely reduced the costs ofproduction directly, through reducing transport expenditure as part of totalcosts, but also indirectly, through creating the bases for mass productionand ever greater division of labour " [12]

Predohl calls investment in transport infrastructures "dynamic structural policy"and thus links the transport economics argumentation with the theoretical andpractical analyses of the "infrastructure" problem area [13] Many contributionshave since dealt with infrastructure quality not only of tracks and roads but of thetransport sector as a whole [14] Lastly, in the cost-benefit analysis systemdealing with transport infrastructures, "growth and structural effects" areconsidered to be of the benefit categories [15]

There is thus no lack of links for identifying the external benefits oftransport [16] Additional, better or cheaper transport services advantage not onlythe economic agents that are, from the outset, buyers on the transport marketsconcerned The improvement in transport links is also likely to induceproductivity-enhancing processes or in any event to be a necessary preconditionfor them These impulses intensify the spatial division of labour, strengthenexchange relationships and make it possible to exploit latent regional developmentpotential Although the transport economy improvements as a rule favour specificlocations and regions, the spill-over effects extend to the entire economic system,leading to better allocation of the factors of production and a higher rate ofgrowth of production and incomes The direct consequences for personal incomedistribution, land use and living conditions in different regions can vary greatly,but the growth of the overall production potential also extends in absolute termsthe opportunities for social and regional policies aimed at greater equality.

The contributions to transport economics mentioned above do not yet,however, include any attempt to enumerate and classify the external benefits thatwould be in any way comparable with the system used for the external costs oftransport Unlike, for example, the external benefits of investment in education,

no attempts at quantification have been made in the past, it being considered thatthe isolation and serious evaluation of the growth effects imputable to transportwas not feasible In this connection, however, the methodological and statisticalconditions have improved in the meantime

Initial attempts in recent years to establish meaningful criteria according towhich a part of the gross domestic product or of annual GDP growth could bedescribed as being external benefits of transport, have as yet come nowhere nearsolving the problem They nevertheless show that very large orders of magnitudeare involved, if the selected methodological approach, or one similar to it, is

used [17]

EXTERNAL BENEFITS OF ROAD TRANSPORT:

CRITICISM AND COUNTER-CRITICISM

On the question of the external benefits of transport, there are not onlyunsolved problems of identification, classification, capture and evaluation, there

is also opposition on matters of principle The existence, or at least the relevance,

of such additional and uncalculated benefits is not universally accepted Inparticular, research institutes that have concentrated on determining the external

comparable counterpart to the external costs, could represent an unsolved problem

of the market mechanism and factor allocation and, in fact, do today:

"As transport systems show no external benefits which distort competitionbetween modes, the analysis can concentrate on the cost side Just theimputation of the negative external effects undoubtedly present shows howthe service quality differences between alternative transport systems areactually valued" [18]

The counter argument is, therefore, that practically all transport benefits and,

in particular, all the road transport benefits are completely internalised by currentmarket decisions together with the government's budget decisions The benefitsthat accrue to the economy derive through productivity gains and to societythrough improved communications possibilities - which are, of course, notdisputed - are considered to be so effective that external benefits not taken intoaccount are not to be assumed The weight of the benefit endowment is fully,and even more than necessary, effective in the individual and public choices,

notably in the case of cars and roads The capture and evaluation of the

"undoubtedly present" external costs, on the other hand, is intended to correct thesituation on the other side and make complete internalisation possible Thepossibility of reaching this goal should not be weakened by any cancelling out of

external costs by external benefits

Such an argument, which denies the existence or calculability of externaltransport benefits and notably motor transport benefits, and attributes information

value to the calculation of external costs only, must however be rejected as

mistaken The problems caused by transport - noise, air pollution, accidentsare certainly more perceptible than the productivity gains due to transport, whichalso require the combined effect of other factors; but influencing factors that are

difficult to isolate and capture are no less real or important for all that

Many arguments border on hairsplitting, for example, when people rack theirbrains about whether the greatly improved possibilities for contacts and visits,thanks to the automobile, give rise to external benefits, namely for the peoplevisited, or whether this is a private occasion, for which "only" a transactionsolution must be found for the imputation of the transport cost [19] Other moreimportant arguments are somewhat arbitrary and inclined to obfuscate theproblem Thus it is sometimes claimed that government decisions on transportinfrastructure building will fully cover the foreseeable growth effects and thatfuture benefits are thereby already internalised by society But this is no basis fordecisions The problem is rather that the positive effects of productivity, supply

and new links, resulting from the political decisions regarding the planning andfinancing of transport infrastructure, need to be accurately seen and then actuallytaken into account [20] In the political controversy to which any major projectgives rise and in view of the somewhat inefficient financing systems, this isanything but obvious As an aid to decision we therefore need the most complete

and precise capture and comparison possible of all benefits and all costs, also

taking account of the timing of their impact But taking account in the planning :stage does not yet mean internalising the benefits; this would require market

relations to be established between the producers and receivers of the benefits

This, however, is not only very difficult for institutional and organisationalreasons; because of the timing of the chain of impacts and the extremely wide

diffusion of the benefits, complete translation into transactions must be considered

impossible The situation is similar with technical innovations: they are always

associated with external benefits because it is not possible to have all the value

of the consequences of the new know-how flow into the account of the

discoverer The external benefits merely justify patent protection

The position that disputes the existence or the allocative relevance ofexternal transport benefits is to be opposed because it takes a static view not at ,

all suited to the problem It is in no way simply a problem of the distribution ofadvantages and disadvantages, like a "zero-sum game" The vital core of thematter is the extension of production and consumption possibilities brought about

by the transport system For this reason, the experience and expectation of

external benefits always has been and still is the precondition for external costs

of a certain type and level being accepted as the price for an expected overallimprovement in the situation Denser settlement, production and traffic have

always been associated with disamenity and pollution Advantages have to be,

paid for by accepting disadvantages The reactions to this are always very,

differentiated There are not only perceptibility thresholds, but also narrower or

broader ranges of tolerance and finally limits to acceptance This applies not only:

to the individuals affected, but also to collective opinion-forming and to political,

decision-making The acceptance limit generally falls with increasing real income,

and increasing knowledge of the risks Avoidance, reduction and compensationmeasures then attempt to establish a balance between the costs of the individualmeasures and the improvement achieved in the overall situation

Among the costs of the measures considered to internalise external costs

there is also an associated reduction in external benefits This point is particularlyimportant because of the dynamic nature of the relationships A synchronous oreven anticipated internalisation of more or less precisely known social costswould have development-damping effects and could be downright prohibitive inits effects This would then prevent the attainment of a higher level of

internalisation strategies in the context of a rational environmental policy It isvery easy to test this assertion by comparing the fully developed, relatively richcountries with the poor developing countries If external costs, for example, inthe fields of transport, water economy and waste disposal in the underdevelopedcountries were to be determined using the same methods and yardsticks as in ourcountries, and were then to be "internalised", any chance of development would

be nipped in the bud

High external costs, and in particular those that are very obvious, thus

support the prima facie supposition that there are also high external benefits, orwill be in the future [21] There are many impressive examples of this in the

development and massing of traffic in the new German Lander and the

neighbouring countries to the east The reorganisation and reconstruction of

industry in a new market economy integration is increasing the volume of traffic

by leaps and bounds over certain links and certain infrastructures This traffic is,

in turn, causing very high external disamenities; there are not only parliamentarydebates, but sometimes even physical fights over acceptance thresholds Therecan be absolutely no doubt that the sacrifice is being made only in the expectation

of higher benefits from an increased level of development These benefits aremainly "external" because they, for the most part, accrue to economic agents whoare not participating in the present transport operations, either as buyers or sellers

The full value of the benefits therefore cannot flow to their provider through

market transactions.

The thesis that the level of acceptance of external costs gives an indication

df the level of the present or expected external benefits can ~ at least at a high

level of abstraction - be raised to a theoretical premise If the total benefits and

total costs for transport and the different transport modes were transparent as totype and level, and if the political system were efficient enough to translateinformation into rational decisions, then an equilibrium would be established

values that appeared at specific points in time It follows from this, among otherthings, that the identification of external costs is by no means in itself an

indication of a need for internalisation The optimum degree of internalisation

can be achieved only if the impacts on external benefits and costs of planned

measures can be taken into account at the same time.

An optimal strategy with regard to the external effects of transport therefore

requires first and foremost a good and balanced information situation The one¬

sided orientation of research and publication activity on the external costs is,however, a source of distortion in the information base Gaps in the information

about the external benefits of transport can give rise to mistaken allocativedecisions with respect to ensuring the level of affluence achieved and with respect

to realising further development potential The task of analytical and empiricaleconomic and transport research arises out of this observation It would already

be a big step forward if the existing knowledge Were to be brought together andevaluated This applies above all to the many scattered research findings on theproductivity and income-raising impetus given by transport investments andservice innovations Then a start could be made on a systematic and criticalcomparison of methodologies The aim is obviously not to begin another numberpuzzle, but to extend and present the increasing body of knowledge in such a waythat it can be used in rational reasoning

INTERNAL AND EXTERNAL BENEFITS OF FREIGHT

TRANSPORT

As an indicator of the level of the private or internal benefits of freighttransport, the earnings of transport undertakings give a rough approximation, butthere are a number of theoretical and practical objections to this approach First,despite increasingly fierce competition, transport markets are far from being fullyfunctioning or even "perfect" markets Then there are problems arising from the

different fiscal treatment of the different modes Furthermore, the information

base is not complete; in particular there are difficulties in capturing and properlyevaluating the service contribution of own-account transport Lastly, the officialstatistics available give only average incomes for transport services The totalearnings from the many logistic services associated with the transport operationand flowing to the enterprises active in this field are considerably higher,however These incomes can only be roughly estimated Despite thesedrawbacks, transport earnings provide the best opportunity to get an idea of theorder of magnitude of the internal benefits of freight transport

in the Federal Republic of Germany in 1990 (old Lander)

excluding pipelines and air transport

output(billion tkm)

Local road haulage 49 400 0.150 7 410

Total road haulage 169 844 - 35 734

Source: Verkehr in Zahlen 1991, pp 343, 411 Local road haulage income is

author's estimate Pipeline 13.3 and air transport 0.44 billion tkm

The above figures include carriage for hire or reward and long and short-haulown-account transport income, estimated using the same average income Thefigures for the railways do not include service and military traffic [22] What ismissing, above all, are the incomes for complementary and ancillary logisticalservices Estimates indicate that in mode-typical service packages, averageearnings per tonne-kilometre can be roughly doubled This is true also for theinland waterways, less so for the railways However, the differences betweenindividual firms with different product ranges can be considerable

If we take the above statistical data and the additional estimates, togetherwith pipeline and air transport as a basis, then the internal benefits of freighttransport total DM 85-90 billion, or about 3.6 per cent of Gross DomesticProduct The modes road, rail and waterway are roughly in the ratios 100-20-6

There now arises the question of whether these volumes and proportions can

be usefully adjusted by taking into account the external benefits and the externalcosts Here it goes without saying that, with the present state of knowledge, areal calculation and hence an assured overall balance is simply not possible.There could be a directional adjustment, however, with the above benefit valuesbeing increased or reduced in line with a trend To use exclusively external costs

question according to the arguments of this paper There are estimates andreference points that tend to indicate, on the contrary, that the weight of theexternal benefits exceeds that of the external costs But these proposals are notyet established in the methodology, and the range of values given is also toogreat A provisional hypothesis that suggests itself is the, admittedly bold,

assumption that the external benefits and external costs roughly cancel oneanother out The continued internalisation of external costs then appears

justifiable only if the market conditions allow an internalisation of the external

benefits in favour of their provider

TRANSPORT

In an analysis of the dynamic interrelationships between economic and

transport development over the longer term, the freight transport functions takepride of place Until the Second World War, the volume of transport output alsojustified this sector being given more attention than passenger transport Since

then, however, sweeping structural changes have brought a marked shift in the

relative weights The sharp increase in incomes and mass car ownership on theone hand and suburbanisation and new consumer preferences on the other, have

caused enormous increases in passenger transport and in particular in local

passenger transport At the same time, there has been a shift in emphasis in trippurposes As compared with daily routine trips for work, education and shoppingpurposes, leisure mobility has constantly grown in importance The still unbrokenexpansion of leisure and holiday travel reflects this trend This means, however,that individual mobility has not only come to have greatly increased weight, butalso that it has a new qualitative effect with respect to benefits and costs

The importance attached to mobility by private households is reflected in ahigh and stable willingness to pay Expenditure on transport gives a firstapproximation to the weight of internal private benefit In Germany (formerFRG) in 1990, some DM 129.7 billion was spent on buying and running privatecars; this amounts to 10.2 per cent of private consumption and corresponds toabout 50 per cent of expenditure on the home In the same year, expenditure onother, generally public, transport was some DM 20.3 billion, or 1.8 per cent ofprivate consumption [23]

Expenditure on car use has increased over the past twenty-five years roughly

in parallel with the levels of income and consumption Deviations are explained

by fluctuations in fuel prices and changes in the specific taxes, fees and insurance.Reactions to gasoline price rises and household survey findings show that theindividual willingness to pay in the great majority of households is even higher,

so that there are substantial "consumer surpluses"

The particularly high value placed on mobility by society is also shown inmany countries in a remarkably strong willingness to pay on the part of centraland local governments, especially for urban public transport In Germany, theannual subsidies to public passenger transport providers ~ including investment -

amount to some DM 15 billion.

As regards the question of external costs and their internalisation, there isthus a difference in the case of car use as against road freight traffic For it is anindisputable fact that road passenger transport pays more in specific taxes andfees than the infrastructure costs imputable to it This traffic segment thus makes

a contribution that amounts to financial compensation for the social costs

The question of whether additional, external benefits are derived frompassenger transport, as from freight transport, i.e advantages for which thebeneficiary economic agents pay no price, looks on the face of it, to be fraughtwith difficulties For individual mobility appears primarily to be a means ofspending incomes and increasing consumption In fact, passenger transport alsohas a dynamic-productive function Thus car ownership has considerablyexpanded the labour markets and hence improved the efficiency of factorutilisation In addition, the exodus of sections of the population from parts of theinner city has made it possible to alter the pattern of land use, in line with thestructural changes in the economy and notably the expansion of the service sector

But external benefits can and should be derived also from the consumptionaspect of passenger transport Private and public willingness to pay indicates thatmobility is a very highly rated need The existing dense and flexiblecommunications network has created opportunities for personal and social contacts

as well as assistance services, in which virtually everyone participates There cantherefore be no doubt that a price for mobility is paid and should be paid It isnot a question of whether a certain level of external costs is to be accepted, theonly question to be argued about is the level of this price Some indication can

be given by any reliable information about the existing disamenity situation andthe possibilities for improving it But of equal rank is more comprehensive andmore accurate information about the benefits side than we have at present Thequestion then arises as to what could no longer be achieved without specific

removal of services would not just lead to partial gaps in supply, but wouldnecessarily trigger a downward spiral for the economy as a whole: shrinkage ofmarkets and reduced division of labour, deterioration in productivity and incomes.

9 CONCLUSION

More questions have been asked than answered in this paper The aim was

to substantiate the urgency of the question of transport benefits and present aframework for the search for answers If the emphasis was on the dynamicfunctions of transport in economic and social development, then theireffectiveness in the present situation of great and rapidly following structuralchanges, can easily be illustrated But the characteristic of the relationshipbetween the service potential of the transport mode and the socio-economicefficiency of the system should lay claim to general validity The weight of thetotal and external benefits of transport admittedly varies with the type, emphasisand intensity of economic development Sudden bursts of growth through drastictechnical and organisational innovations and concentrated investment activity can

be followed by periods mainly characterised by adjustments that can come close

to being a "steady state" In such a situation, the significance of externaltransport benefits would simply consist in finding the optimum for the handling

of external costs between toleration and internalisation At present the foreseeabletasks and developments leave little room for considering "steady state" models.There is no sign at all of any saturation limit for transport or transportinfrastructures, or of any tendency towards decreasing marginal returns in freighttransport decreasing marginal utility in passenger transport The theoretical andempirical discussion over the benefits side of transport should also help to break

through the present investment slowdown in certain countries

The benefit of transport lies in an improvement in the economic conditionsbrought about by the spatial transfer of people and goods Since industrialisation,the transport system has been able to achieve a virtually unbroken series oftechnical and organisational advances This is a precondition for the sustainablegrowth of production and living standards For transport has the quality of a

dynamic infrastructure; it enables ever more intensive spatial division of labour

in ever bigger markets

Modern transport systems are extraordinarily multi-faceted; they include theservices of a number of transport modes whose production, cost and marketconditions vary greatly These system-specific advantages and disadvantagesdetermine the basic pattern of specialisation and division of labour For manyimportant service areas there are also substitution possibilities and hence fierce

substitution competition

Despite the considerable importance of inland waterways, coastal shipping,pipelines and air transport in certain countries, the relationship between rail androad transport is the crux of the co-ordination problem for transport withinEurope

The system characteristics of the railways offer attractive cost and qualityconditions for high- volume transport between nodal points in the economic space;

it is a carrier of bulk radial traffics Road transport, on the other hand, hasundeniable advantages in collection and distribution traffic and more generally inthe carriage of relatively small quantities over relatively short distances; inaddition, its flexibility makes it possible to meet particular transport needs Thesecharacteristics indicate an essentially complementary relationship of completionand co-operation

The old, simple pattern of division of labour has been completely changed

by the economic and social dynamic of the past thirty years however The sharp

increases in productivity and real incomes, together with the shifts in demand

structure and production methods, have modified the requirements for the delivery

of goods and the mobility of people in such a way that road transport has becomethe very clearly dominant mode The most important factors here were thetechnical and organisational possibilities for flexible adjustment of the servicesprovided to the new demands of logistic systems planning

The extremely rapid expansion of road passenger and freight transport has,however, led to increasing disamenity and environmental pollution and tocongestion caused by bottlenecks in the road network The appearance of highexternal costs has given rise to criticism of this development Acceptance of thecosts of environmental pollution and road accidents has weakened the competitiveposition of the railways The dominant position of road transport thus does notreflect the "true" benefit contribution of the transport modes

the question of the benefits of transport, and especially of road transport, beingseen as a problem of market regulation Although there is a broad consensus onthe importance of road transport in the economic expansion of recent decades,there is argument about the interpretation and imputation of these benefits Theessential question is whether the benefits of transport services are fully andcompletely rewarded through the market, or whether there are external benefits

as well as internal In this paper we try to demonstrate the appearance of externalbenefits of transport and emphasize their relevance for the allocation of the factors

1 According to Planco Consulting, Externe Kosten des Verkehrs - Schiene,Strafe, Binnenschiffahrt - Gutachten der Deutschen Bundesbahn, Essen

1990, with detailed survey of the literature See also Teufel, D., et al,Umweltwirkungen von Finanzinstrumenten im Verkehrsbereich, UPI-Bericht

Nr 21, Heidelberg, 1991

2 In what follows only passenger and freight transport are considered

3 Cf Wittmann, W., Externe Kosten und Nutzen im Stra$enverkehr, Gutachtenfiir den Schweizerischen StraPenverkehrsverband (FRS), Bern O.J., 1990

4 Clark, C, The Conditions of Economic Progress, London 1940; Fourastie' J.,Die gro|3e Hoffnung des 20 Jahrhunderts, Koln 1954; Rostow, W W.,Stadien wirtschaftlichen Wachstums, Gottingen, 1960

5 Predohl, A., Verkehrspolitik, 2 Aufl., Gottingen, 1964, p 17 ff

6 Verkehr in Zahlen 1991, Hrsg.: Der Bundesminister fiir Verkehr, bearbeitetvon: Deutsches Institut fiir Wirtschaftsforschung (DIW), Bonn,September 1991, p 340 ff In 1990, the inland waterways share was18.3 per cent and pipeline transport 4.4 per cent

7 In German frontier-crossing traffic the modal split was: in 1960, railways52.3 mt and road haulage 11.7 mt; in 1990, railways 60.4 mt and roadhaulage 176.9 mt (Verkehr in Zahlen, pp 266-267)

8 Marshall, A., Principles of Economics, 8th Ed (1920), London 1949,

pp 221, 230 For a useful interpretation, see Blaug, M., Economic Theory

in Retrospect, Homewood (111.), 1962, p 364 f

9 Pigou, A.C., The Economics of Welfare, 4th Ed., London, 1952

10 Cf A Survey of Contemporary Economics, Vol II, Ed.: Haley, B F.,Homewood (111.), 1952, p 117 ff, with many references.

11 List, F., Das deutsche National-Transportsystem in volks- undstaatswirtschaftlicher Beziehung beleuchtet, Altona, 1838; Sax, E., DieVerkehrsmittel in Volks-und Staatswirtschaft, Bd 1, AllgemeineVerkehrslehre, Berlin, 1918; Schmitt, A., Verkehrspolitik, in: Weber, A.,Volkswirtschaftslehre, Bd 4, Munchen und Leipzig, 1933; Predohl, A.,Verkehrspolitik, 2 Aufl., Gottingen, 1964

12 Schmitt, A., op cit, p 150 f

13 Predohl, A., op cit., p 313 ff

14 Cf a.o Frey, R L., Infrastruktur, 2 Aufl., Tubingen und Zurich, 1972;Siebert, H., Infrastruktur und Wachstum, in: Zeitschrift fur die gesamteStaatswissenschaft, 130 Band, 1974, pp 533-544

15 Cf a.o Planco Consulting, Gesamtwirtschaftliche Bewertung vonVerkehrswegeinvestitionen - Bewertungsverfahren fiir denBundesverkehrswegeplan 1985, in: Schriftenreihe des Bundesministers fiir

Verkehr, Heft 69, Bonn, 1986

16 Interesting material is also provided by experience with specific growthprogrammes in various countries See Hirschman, A.O., Die Strategic derwirtschaftlichen Entwicklung, Stuttgart, 1967

17 Diekmann, A., Nutzen und Kosten des Automobils Vorstellungen zu einerBilanzierung, in: Internationales Verkehrswesen 42 (1990), 6 Heft,

p 332-339; Willeke R., Soziale Nutzen des Kraftfahrzeugverkehrs, in:Zweites Karlsruher Seminar zur Umweltdkonomie und Verkehrsplanung,Schriftenreihe der Deutschen Verkehrswissenschaftlichen Gesellschaft,

Bd B136, Bergisch Gladbach, 1991, p 49-60 Both sources concentrate onmotorised road transport in Germany Diekmann gives a figure of 10 to

20 per cent of Gross Domestic Product for the mid-80s

(DM 180-360 billion), while Willeke would attribute "over half of real

economic growth between 1981 and 1990 to productivity gains broughtabout through transport and logistics

18 Planco Consulting, Externe Kosten des Verkehrs, loc cit., p.l ff; Teufel, D

et al, Umweltwirkungen von Finanzinstrumenten im Verkehrsbereich, loc.cit., p 42 ff

19 According to Planco Consulting, Externe Kosten des Verkehrs, loc cit.,

pp 1-8 On this point, see also Wittmann, W., loc cit., p 48 ff

20 "The social evaluation of the mobility possibilities and the growth orregional economic effects induced by the transport infrastructure is expressed

in the collective willingness to pay." Planco Consulting, Externe Kosten des

Verkehrs, loc cit., pp 1-6

21 If the external costs are caused mainly by transport infrastructurebottlenecks, then a comparison of the internal and external costs and the

detectable internal and external benefits is an indication of the scarcity and

incentive for investment to upgrade the transport infrastructure The use ofcost-benefit analysis is only partly suited to this task because of the lack of

information about the benefit side.

22 Because of many differences in classification and delimitation, the figuresgiven here are not directly comparable with those in the DB Annual Report

23 Statistisches Jahrbuch der Bundesrepublik Deutschland 1991 and specialevaluation by the Federal Statistical Office

A Survey of Contemporary Economics, Vol II, Homewood (III), 1952, p 117

onwards.

Aberle, G., Zukunftsperspektiven der Deutschen Bundesbahn, Heidelberg, 1988

Aberle, G ; Weber, U., Verkehrswegeabgaben fiir die Eisenbahn, Darmstadt,

1987.

Blaug, M., Economic Theory in Retrospect, Homewood (III), 1962, p 364

Clark, C, The Conditions of Economic Progress, London, 1940

Diekmann, A., Nutzen und Kosten des Automobils - Vorstellungen zu einerBilanzierung, in : Internationales Verkehrswesen 42 (1990), 6 Heft, pp 332-339

Forschungsgesellschaft fiir Strassen - und Verkehrswesen, RAS-W- Richtlinien furdie Anlage von Strassen, Cologne, 1987

Fourastie\ J., Die grosse Hoffnung des 20 Jahrhunderts, Cologne, 1954

Frey, R L., Infrastruktur, 2 Aufl., Tubingen and Zurich, 1972

Haley, B.F (Hrsg.), Homewood (III), 1952, p 117 onwards

Hirschman, A O., Die Strategic der wirtschaftlichen Entwicklung, Stuttgart, 1967

Jeanreaund, C, Externe Vorteile der Strasseninfrastruktur, in : Jahrbuch der

Schweizerischen Verkehrswirtschaft 1989/90, Saint-Gall, 1990, pp 53-63

List, F., Das deutsche National-Transportsystem in volks- undstaatswirtschaftlicher Beziehung beleuchtet, Altona, 1838

Marshall, A., Principles of Economics, 8 Ed (1920), London, 1949.

Marti, P., Mauch, S ; Maibach, M., Indikatoren zur Erfassung von sozialenKosten und Nutzen des Verkehrs : Moglichkeiten und Grenzen, in : Strassen und

Verkehr 2000 Band 3, Internationale Strassen- und Verkehrskonferenz, Berlin,

6-9 September 1988

Pigou, A C, The Economics of Welfare, 4 Ed., London, 1952

Planco Consulting, Gesamwirtschaftliche Bewertung vonVerkehrswegeinvestitionen - Bewertungsverfahren fiir denBundesverkehrswegeplan, 1985, in : Schriftenreihe des Bundesministers fiir

Verkehr, Heft 69, Bonn, 1986

Planco Consulting, Externe Kosten des Verkehrs - Schiene, Strasse,Binnenschiffahrt - Gutachten im Auftrag der Deutschen Bundesbahn, Essen, 1990

Predohl, A., Verkehrspolitik, 2 Aufl., Gottingen, 1964

Rostow, W W., Stadien wirtschaftlichen Wachstums, Gottingen, 1960

Sax, E., Die Verkehrsmittel in Volks- und Staatswirtschaft, Bd 1, AllgemeineVerkehrslehre, Berlin, 1918

Schmitt, A., Verkehrspolitik, in : Weber, A., Volkswirtschaftslehre, Bd 4, Munichand Leipzig, 1933

Siebert, H., Infrastruktur und Wachstum, in : Zeitschrift fiir die gesamte

Staatswissenschaft, 130 Bd., 1974, pp 533-544

Statistisches Jahrbuch 1991 fur Deutschland, Stuttgart 1991

Teufel, D., et al, Umweltwirkungen von Finanzinstrumenten im Verkehrsbereich,UPI-Bericht n° 21, Heidelberg, 1991

Verkehr in Zahlen 1991, Hrsg : Der Bundesminister fiir Verkehr, bearbeitet von :Deutsches Institut fur Wirtschaftsforchung (DIW), Bonn, September 1991

Willeke, R., Soziale Kosten und Nutzen der Siedlungsballung und desBallungsverkehrs, Schriftenreihe des Verbandes der Automobilindustrie (VDA),

n° 41, Francfort-sur-le-Main, 1984

Willeke, R., Soziale Nutzen des Kraftfahrzeug verkehrs, in : Zweites KarlsruherSeminar zur Umweltokonomie und Verkehrsplanung, Schriftenreihe der DeutschenVerkehrswissenschaftlichen Gesellschaft, Bd B 136, Bergisch Gladbach, 1991,

pp 49-60

Wittmann, W., Externe Kosten und Nutzen im Strassenverkehr, Gutachten fiir den

Schweizerischen Strassenverkehrsverband (FRS), Berne, O.J (1990)

Jan SIMONS

Professor of Transport Economics

Free University of Amsterdam

Director Transport and Traffic

Rotterdam Chamber of Commerce and Industry

Rotterdam Netherlands