Transportation Policy

The election is behind us. A Democratic administration headed by President-elect Barack Obama and a heavily Democratic Congress will assume power next January. How will this influence the direction of federal surface transportation policy and programs? To gain some insight, we have solicited the views of a number of people, including some who are familiar with the thinking of President-elect Obama’s transition team. While the views expressed below are our own, they have been influenced by the observations and speculations expressed in these interviews. By common agreement, all conversations were held off the record and not for attribution in order to allow for the freest possible expression of views.

A recent report that I coauthored, "Managing Transport Challenges When Oil Prices Rise" provides practical policy guidance on how to manage the risks of rising oil prices by increasing transport system efficiency. People with short attention spans might think that this report is already outdated, since global financial uncertainty has replaced rising fuel prices as the crisis-of-the-month. Leading businesses are bankrupt, employees are frightened, consumers are cautious, and fuel prices plummeting.

People’s response to death typically proceeds through various stages: disbelief, denial, anger, bargaining, guilt, and eventually acceptance and hope. Motorists’ response to increased fuel price seems to follow similar stages:

It turns out that the “law of demand” (the tendency of higher prices to reduce consumption) and the principles of urban economics (that improved accessibility increases land values) still apply. If we are smart, we can use these to help solve problems and benefit consumers.