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[email protected] 250-508-5150 Socially Optimal Transport Prices and Markets Principles, Strategies and Impacts 22 April 2021 By Todd Litman Victoria Transport Policy Institute Abstract This paper investigates the amount and type of mobility (physical travel) that is optimal for society overall. It asks, “How much and what type of travel would people choose if the transportation system reflected efficient market principles including consumer sovereignty, cost-based pricing and neutral public policies?” It discusses these principles, identifies existing transport market distortions and reforms, estimates how such reforms would affect mobility, and investigates resulting economic impacts. This analysis indicates that in a more optimal transportation market consumers would choose to drive less, use alternative modes more, choose more accessible locations, and be far better off overall as a result. Although previous studies have evaluated individual transport market reforms, few have considered their cumulative impacts. Summarized in Economically Optimal Transport Prices and Markets: What Would Happen If Rational Policies Prevailed? paper 11, presented at the International Transportation Economic Development Conference (https://tti.tamu.edu/conferences/ited2014); at www.vtpi.org/ITED_optimal.pdf. Todd Alexander Litman 2000-2021 You are welcome and encouraged to copy, distribute, share and excerpt this document and its ideas, provided the author is given attribution. Please send your corrections, comments and suggestions for improvement.