(this is an updated version of a policy brief written for my Economics and Planning class in the autumn of 2010)
Seattle is a growing city that like many cities is running up against the environmental, economic, and social consequences of both automobile travel. There are numerous policy levers available for automobile travel but Seattle has only utilized a few of these so far. I will show how in the existing policy environment people are incentivized to drive automobiles rather than take mass transit, even before issues such as travel time, convenience, etc. are factored in.
In 2009 fuel costs amounted to $.0821 per mile to drive a small sedan. Tire replacement and maintenance cost an additional .0487 cents per mile.
[i] However, the consumer rarely pays for tires and maintenance at the time of consumption and most people don’t factor these into their monthly budgets the way they do gas costs. At $.0821 per mile a Seattle commuter with a compact car can drive 43 miles a day before their monthly marginal cost meets that of a $108 3 zone transit pass.
[ii] If we assume our consumer is rational and factors in maintenance and tire costs then they can travel 27 miles a day before the monthly marginal cost of driving equals that of a transit pass. For someone who already owns a car in Seattle, it makes economic sense to drive it.
In the below chart I have used actual data from the Seattle area concerning the cost of a car and the cost of various transit passes. Note the 1 zone pass is only useful for short distances.
Read more »
