Updated on 2/13/2022 at 9:34 am
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- Society bears the costs of damage to health and the environment at around 5,000 euros per year.
- The most costly to society are air pollution, land use, infrastructure maintenance and curb parking.
- But for the vehicle owners themselves, owning a car is significantly more expensive than previously assumed.
A new study has determined the true cost of driving. The result was that many people can only afford their vehicle because society bears the costs of damage to health and the environment – at around 5,000 euros per year.
A car is not only one of the most expensive items for many households, but also for society. For example, expenditure on transport in the European Union (EU) is only exceeded by the cost of housing and equipment, ahead of food and non-alcoholic beverages.
When it comes to driving costs, a distinction is made between internal and external costs. Some vehicle expenses are financial expenses that can be directly measured in money. For example, car owners pay for the purchase of their vehicle, insurance, fuel and sometimes parking. This is the internal cost. In addition, there are also some economic costs, such as delays caused by congestion, accident damage and pollution, which can be valued and which economists “monetize” in various ways.
For example, transport economists have estimated the value of travel time in various circumstances. You can also use the compensation for accident victims. The experts also see that property prices are higher on quiet streets than on busy streets, indicating the cost of traffic noise. The costs that a motorist imposes on the community – that is, the cost of the roads and parking spaces they use, as well as delays, the risk of accidents and pollution – are known as “external costs” or subsidies.
Social costs are around 5,000 euros per year
The study “The Lifetime costs of driving a car” has now determined the true cost of a private vehicle. According to this, the company finances each car annually with an average of around 5,000 euros. But for the vehicle owners themselves, owning a car is significantly more expensive than previously assumed.
The mobility researchers Stefan Gössling, Jessica Kees and Todd Litman examined the costs for the three most common German car types Opel Corsa (small car), VW Golf (medium-sized car) and Mercedes GLC (SUV). For their calculations, they assumed a mileage of 15,000 kilometers per year. According to this, an Opel Corsa would cost 599,082 euros, a VW Golf 653,561 euros and a Mercedes GLC 956,798 euros during a lifetime as a driver.
In the study, these costs were estimated over a 50-year lifetime, which leads to these large numbers. Usually, these costs are not measured in this way – you think of costs per year, month, trip or kilometer. Basically, you can estimate the annual costs by dividing the lifetime values by 50. After that, one can separate the internal costs, which are borne directly by the users, and the external costs, which are imposed on other people.
According to this calculation, the company co-finances the small car with 41 percent (4,674 euros), for the mid-size car the subsidies are 38 percent (4,755 euros) and for the SUV 29 percent (5,273 euros). On average, each car costs society 5,000 euros.
Significant cost factors for society
According to the study, the main factors responsible for the high costs are air pollution, land use, infrastructure maintenance and curb parking. In addition, there would be expenditure caused by noise, climate change and restrictions on pedestrians and cyclists.
“Most drivers underestimate the cost of a car, especially large, infrequent expenses like major repairs or damage from accidents,” said Todd Litman, one of the study’s authors. “And few people think of the full costs when making long-term decisions, such as whether to buy a home in a pedestrian-friendly area where they don’t need a car or in a car-friendly suburb where they do need one.”
Also, people who buy a car would automatically expect someone else to provide the infrastructure for its use, such as roads to navigate or free parking at each destination. “In fact, motorists consider it their right,” Litman continued. “They often complain when roads are congested or when they have to pay for parking.”
In other words, because cars are so resource-intensive—that is, they require more expensive infrastructure, use more energy, and involve more risk and pollution than other forms of transportation—owning a car makes people selfish. They would expect more than people who walk, bike or use public transport. “This is not to say that cars are bad per se, but that they cause costs for people and society,” concludes the mobility researcher.
Sources used
- Sciencedirect.com: The lifetime cost of driving a car
- Todd Litman, mobility researcher and co-author of the study
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