| Nature | Description | Potential Reform |
| Consumer Options and Information | Markets often offer limited alternatives to automobile transportation and automobile-oriented location. | Recognize the value of alternative modes and more accessible development in planning decisions. |
| Underpricing | Many motor vehicle costs are fixed or external. | As much as feasible, convert fixed costs to variable charges and charge motorists directly for the costs they impose. |
| Transport Planning Practices | Transportation planning and investment practices favor automobile oriented improvements, even when other solutions are more cost effective. | Apply least-cost planning so alternative modes and management strategies are funded if they are the most cost effective way to improve transport. |
| Land Use Policies | Current land use planning policies encourage lower-density, automobile-oriented development. | Apply smart growth policy reforms that support more multi-modal, accessible land use development. |
Source: Litman, T. (2006) "Transportation Market Distortions”, Berkeley Planning Journal, Volume 19, p.30.
Market Distortions Impacting the Automobile
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