B.E.B.R. – Bureau of Economic and Business Research

The Response Of Railroad And Truck Freight Shipments To Optimal Excess Capacity Subsidies And Externality Taxes

Publication Type: Benefit-Cost, Cost Effectiveness, Fiscal Impact, Program Evaluation, Industrial and Occupational Structure, Public Policy, Revenue Forecasting, Taxation, Transportation
Pages: 47
Authors: Dewey, James F.; Denslow, David; Lenze, David; Irwin, Eve
Division: Economic Analysis
Florida’s public highways are congested. At the same time there is excess capacity on private railroads. Further, the social costs of moving a ton-mile of freight—including costs from air pollution, accidents, congestion, and wear on the nation’s transportation system—are lower by rail than by truck for many types of freight movements. Given this situation, should the state design policies to increase utilization of the state’s railroads? Would a policy that subsidizes freight shipment by railroad, and taxes the generation of harmful externalities, be beneficial to residents of the state? This report examines whether such policies can be economically justified.

PDF: https://www.bebr.ufl.edu/sites/default/files/Research%20Reports/rail_freight_subsidy_report_0.pdf

Subject Index:
Policy Studies, Public policy, Taxes, Transportation, Florida data

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