Abstract
This study explores a paradox: the negative relationship between mobility (motor vehicle travel) and
economic productivity. Conventional planning often assumes that faster, cheaper, and more vehicle
travel supports economic development, but evidence described in this study indicates that, on the
contrary, in mature economies productivity tends to decline with more driving and increases with
non-auto travel. This study investigates why this occurs. It identifies several ways that increased
vehicle travel can reduce productivity including higher user, infrastructure, and external costs; more
automobile dependency and sprawl that reduce accessibility and mobility options; less local
productivity; and less attractive urban environments. These impacts filter through the economy,
reducing productivity, incomes, economic opportunity, property values and tax revenues. This study
indicates that the best way to increase productivity is to increase transportation efficiency so
economic activities require less driving. It identifies ways that transportation agencies, business and
individuals can best achieve their economic goals.
Introduction
This study investigates the relationship between mobility, the amount that people travel, and
economic productivity, people’s ability to produce and ultimately consume goods and services. It
finds that in developed country cities, increases in urban vehicle travel tend to reduce productivity.
This occurs despite the fact that increased productivity increases incomes which allows residents to
purchase more mobility. This contradicts conventional assumptions that faster and cheaper driving
are economically beneficial.
Of course, in many situations, motor vehicle travel does increase productivity. Farmers, carpenters
and visiting nurses usually accomplish more by automobile than using other modes. However, motor
vehicle travel also imposes large costs to users (to own and operate vehicles), governments and
businesses (for roads and parking facilities) and communities (from congestion, crash risk and
pollution damages imposed on other people). Motor vehicles tends to displace other modes,
reducing non-drivers’ mobility. As vehicle travel increases, benefits tend to decline marginally while
costs increase linearly, so a growing portion of driving is economically inefficient, its costs exceed its
benefits, as illustrated below.
