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The impact on a product or service whereby its value increases as more people use it. In transportation economics, a transport network increases in value as it becomes more extensive, making it more attractive to new users.

A systematic approach to estimating the strengths and weaknesses of alternatives. Used in transportation infrastructure planning to determine the feasibility and efficiency of projects like highway construction or airport expansion.

Setting the price of a service equal to the marginal cost of producing one additional unit of it. For transport, this means pricing services so that users pay the cost associated with their incremental use, like road tolls during peak hours.

The analysis of who bears the ultimate economic burden of a tax. In transportation, fuel taxes or vehicle registration fees may be passed on to consumers through higher transportation costs.

A market failure occurs when there is inefficient allocation of goods and services by the market. Monopolies in transportation, such as a single rail provider, can lead to higher prices and reduced service quality, justifying regulatory intervention.

Increase in the consumption of a good or service that results from an increase in supply. In terms of transportation, building new roads can actually lead to more traffic as the increased supply of road space encourages more people to drive.

The percentage of travelers using a particular type of transportation. Economic factors—such as price, convenience, and speed—affect the modal split, guiding investments in transportation infrastructure and services.

The relationship between the quantity of transportation services that producers are willing to supply at various prices and the quantity that consumers are willing to buy. In transportation, this principle helps in determining the fares and schedules for services like buses, trains, and flights.

Strategies to reduce demand for private vehicle use, typically by promoting alternative transport modes and reducing trips. TDM can include incentives for carpooling, telecommuting, and investment in public transportation.

The opportunity cost of the time individuals spend on transportation. It is an important factor in transportation economics as it affects the mode of transportation chosen by users and their willingness to pay for quicker options.

The evaluation of the profitability and risk of an investment project. In transportation, this involves calculation methods such as Net Present Value (NPV) and Internal Rate of Return (IRR) for projects like new railway lines or airports.

Refers to the efficiency and effectiveness of transportation links that connect people to the nearest public transportation hub. It's significant in determining the overall accessibility and attractiveness of a transportation network.

A process to evaluate the total costs associated with the lifespan of a transportation asset, including initial construction, operation, maintenance, and disposal. This allows for more economically sound infrastructure investment decisions.

Charging higher prices during periods of peak demand. In transportation, this can mean higher fares for rush hour transit or surge pricing for ride-sharing services to manage demand and alleviate congestion.

A measure of the ease with which people can reach desired services and activities. In transportation economics, this plays a key role in land use planning, as improved accessibility can enhance economic opportunities and quality of life.

Occurs when the demand for a good or service is insensitive to price changes, often characterized by a lack of close substitutes. In transportation, public transit can have inelastic demand, especially in dense urban areas.

The process by which transportation projects are ranked and funds are allocated based on criteria such as expected benefits, costs, and strategic importance. This prioritization ensures the most efficient use of limited resources.

The fair distribution of transportation benefits and costs among different societal groups. Considerations include ensuring fair access to mobility for all income levels and reducing negative impacts on disadvantaged communities.

The cost or benefit that affects a party who did not choose to incur that cost or benefit. Transportation externalities may include congestion, pollution, and noise, which have implications for city planning and infrastructure investment.

Cost savings that occur when a company offers a range of products rather than specializing in one. In transportation, a diversified range of services (freight and passenger) can improve overall efficiency and cost-effectiveness.

Measures how demand for a good is affected by a change in price. In transportation, it helps to understand how changes in service prices (e.g., fuel prices or ticket fares) might affect the quantity of demand.

The rules and laws governing transportation to ensure safety, fairness, and efficiency. Economic principles guide policymaking to address issues like congestion, environmental impacts, and infrastructure funding.

The reduction or elimination of government power in a particular industry. In transportation, deregulation might involve liberalizing air travel markets, which can lead to increased competition and potentially lower prices.

The use of more than one mode of transport to move persons or goods. Efficient multimodal systems optimize the utilization of different modes to improve overall economic and environmental performance of transport systems.

The environmental impact of transportation, especially concerning greenhouse gas emissions. Climate policy in this context aims at reducing emissions through regulations and incentives for cleaner transportation modes.

The expansion of urban areas into low-density, auto-dependent developments. This has significant economic implications for transportation, as it can increase infrastructure costs and impose a higher need for personal vehicles.

A method of charging users of a transport network in periods of peak demand to reduce traffic congestion. This pricing model can optimize the use of existing transport infrastructure and is an economic tool to manage demand.

The cost advantage achieved by an increased level of production. In transportation, larger fleets and increased service frequency can lead to reduced costs per unit of transportation.

Public goods are non-excludable and non-rivalrous, meaning their use by one individual does not reduce availability to others. Roads are a common example in transportation, which often justifies government expenditure and management.