Social Cost of Transportation

The social cost of transportation refers to the overall impact of transportation activities on society, beyond just the direct costs paid by users. This includes factors like traffic congestion, air pollution, greenhouse gas emissions, noise, and public health issues. For instance, while individuals may only consider fuel and toll expenses, the broader social costs also encompass environmental damage and healthcare costs related to pollution. Understanding these social costs helps policymakers make informed decisions about transportation systems, aiming for options that benefit both individuals and the community at large.