... the cost of fuel and time to the journey, air pollution and its resulting effects upon both human health and the environment, noise pollution effecting property value in areas surrounding busy roads, and the costs of traffic law enforcement. Initially the under pricing of road transport was beneficial to the motor vehicle industry due to the economics of scale at the time, encouraging private car ownership with the reduction in the average costs of running a car. However today there are very few further economics of scale available in the motor industry, which is common for many mature industries, as an increase in the number of cars on the road does not guaranty a benefit for society and has both positive and negative effects on the economy of a nation; it can be seen that the external costs and diminishing returns now outweigh the benefits of undercharging (www.vtpi.org). In ...

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