[sustran] Re: Auto industry and prosperity

[Todd Litman]

There is considerable research supporting what Eric Bruun wrote. Although
automobile ownership and use tend to increase with industrial development,
there is no evidence that automobile use by consumers CAUSES
industrialization or economic development, at least not now, since motor
vehicle manufacturing is a low-profit industry due to excess production
capacity. Policies that encourage more efficient transportation can provide
economic development benefits. For information see:

"TDM and Economic Development" chapter of the Online TDM Encyclopedia -
http://www.vtpi.org/tdm/tdm54.htm.

"TDM in Developing Regions" chapter of the Online TDM Encyclopedia -
http://www.vtpi.org/tdm/tdm75.htm.

"Sustainable Transportation and TDM" chapter of the Online TDM Encyclopedia
- http://www.vtpi.org/tdm/tdm67.htm.

"Automobile Dependency and Economic Development", Victoria Transport Policy
Institute - http://www.vtpi.org.

Best wishes.

-Todd Litman

At 09:02 PM 11/17/01 EST, you wrote:
>
>I have little to add to most of the great comments and critiques, except for 
>one thing
>mentioned recently.
>
>I question whether the auto industry is really an engine of prosperity in 
>general. I think it is an engine of prosperity for the countries that EXPORT 
>autos. The US has been a great boost to the Japanese auto industry in
general 
>and the European luxury car markets. But autos also generate enormous costs, 
>both monetary and non-monetary. Again, I refer to Kenworthy, Newman, et.al 
>that shows that cities that have a higher auto dependence consume far more
of 
>their wealth on autos. This can be viewed as a drag on the economy if one 
>believes that people could live just as well with less auto use. Atlanta 
>region citizens spend twice as much per year on transportation as Munich 
>region citizens, and I would argue that they have a lower quality of life, 
>spending much of their time in traffic jams if they have autos and
struggling 
>to get around if they don't. There is certainly much more poverty and 
>hardship in Atlanta than in Munich. Some of this has be explained by the 
>forced expenditures on autos people can not really afford, but must have in 
>order to get to work, to get to stores, etc.
>
>Eric Bruun
>
>
>

Sincerely,

Todd Litman, Director
Victoria Transport Policy Institute
"Efficiency - Equity - Clarity"
1250 Rudlin Street
Victoria, BC, V8V 3R7, Canada
Phone & Fax: 250-360-1560
E-mail:  litman at vtpi.org
Website: http://www.vtpi.org