External Costs of Air Emissions from Transportation

The production of equipment and materials used for transportation facilities and services can have significant environmental effects. Considerable effort is expended to reduce such effects as efficiently and effectively as possible. In this paper, we estimate external environmental costs resulting from the production of common transportation equipment, materials, and services. These external cost estimates only include the effects from air emissions of conventional pollutants, including carbon monoxide, greenhouse gases (or global warming potential), volatile organics, sulfur dioxide, particulate matter, and nitrogen oxides. The estimates include all the direct and indirect supply chain emissions, such as electricity generation and mining. The cost estimates are uncertain and are likely to be underestimates of total external costs. However, the estimates should be useful for an initial assessment of the total social costs of transportation projects, and to indicate products and processes worthy of additional pollution prevention efforts. In particular, we find that additional external environmental costs may range from as low as 1% to as high as 45% for transportation services. External environmental costs of transportation equipment manufacturing range between 0.3 and 11%, while the external environmental costs of transportation construction and operation materials are estimated to vary between 1 and 100%.