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counted as products of the manufacturing industry, rather than the transportation industry. There is another reason why calculating transportation-related final demand as a component of GDP does not accurately reflect the industry’s contribution to the economy. This is because products of other industries delivered to final demand for other social functions, such as housing, also contain values generated by the transportation industry. For example, when a consumer buys a new house, he or she pays not only for the land, materials, and labor, but also for the transportation required to deliver goods and services used in the construction of the house. A proper measure of the contribution of the transportation industry to GDP is the valueadded generated by transportation in the production of its total output, that is, transportation services used by all industries in their production, plus transportation services delivered to final demand. Measuring the contribution of the transportation industry to GDP based on value-added origination, however, leads to undercounting it, given Chapter 2 Transportation and the Economy � 41 the current system of industrial classification used in the NIPA. Table 2-4 presents the valueadded contribution to GDP of several industries, including the for-hire component of the transportation industry. This component of the transportation industry includes only establishments that offer transportation services to the public for a fee—the so-called for-hire transportation industries. The share of value-added in GDP originating from for-hire transportation decreased in current dollars from 3.8 percent in 1980 to 3.3 percent in 1993 (the latest year for which data are available). This reflects increases in the prices charged for other industries’ products rather than a decrease in the for-hire transportation’s contribution to GDP. If constant dollars are used, the for-hire transportation’s value-added contribution to GDP actually increased, reflecting the smaller inflation in the prices of transportation services as well as their relatively higher productivities. Transportation-related GDP is undercounted from the industrial side because the value of private transportation is not included. Private transportation can be defined as transportation TABLE 2-4: CONTRIBUTIONS TO GROSS DOMESTIC PRODUCT (GDP): SELECTED INDUSTRIES 1980 1990 1991 1992 1993 1980 1990 1991 1992 1993 Billions of current dollars Billions of 1987 dollars GDP 2,708.0 5,546.1 5,724.8 6,020.2 6,343.3 3,776.3 4,897.3 4,867.6 4,979.3 5,134.5 For-hire transportation 102.9 176.8 183.7 193.8 207.9 120.2 168.9 175.0 183.7 193.5 Communications 68.9 146.7 154.2 162.1 169.8 94.4 140.8 148.2 153.8 158.9 Health care 111.5 304.4 335.2 364.4 389.4 196.1 241.4 248.0 252.0 255.3 Education 16.4 38.1 43.4 45.6 47.8 26.3 32.1 34.8 35.1 35.5 Percentage of GDP Percentage of GDP For-hire transportation 3.8 3.2 3.2 3.2 3.3 3.2 3.4 3.6 3.7 3.8 Communications 2.5 2.6 2.7 2.7 2.7 2.5 2.9 3.0 3.1 3.1 Health care 4.1 5.5 5.9 6.1 6.1 5.2 4.9 5.1 5.1 5.0 Education 0.6 0.7 0.8 0.8 0.8 0.7 0.7 0.7 0.7 0.7 SOURCE: U.S. Department of Commerce, Bureau of Economic Analysis, “Survey of Current Business,” May 1993, tables 9 and 12; October 1994, table 2; April 1995, table 1.
42 � Transportation Statistics Annual Report 1996 activities conducted by industries whose primary business is not transportation. Under the current industrial classification system of national accounts, the value of private transportation is counted as the output of an industry’s primary activity, rather than as a transportation output. � Transportation Satellite Account The undercounting of transportation-related GDP based on value-added origination, noted above, results from including only the for-hire transportation industry and excluding the private transportation of nontransportation industries. The Standard Industrial Classification (SIC), which is used in the NIPA, recognizes two types of establishments—operating and support. Operating establishments offer goods and services for a fee, and support establishments provide functions such as research, central administrative services, and warehousing for other establishments of the same company. The operating establishments’ SIC depends on the primary activity of the establishment; support establishments, on the other hand, are given the same SIC as the operating establishments they serve. Consequently, an operating establishment providing trucking services for a fee is classified as part of the transport industry, while a support establishment providing trucking services within a grocery firm or a manufacturing firm is considered part of the retail or manufacturing industry. Thus, value-added originating from private transportation is counted as part of the industries served. To address this artificial distinction, BTS is engaged, jointly with BEA, in developing the Transportation Satellite Account. The TSA, developed around the U.S. Input-Output Account, will provide credible and consistent measures of transportation’s contribution to the national economy and its interactive relationship with other productive sectors of the economy. It distinguishes between for-hire and private transportation and presents information on the industry-by-industry distribution of transport activities of both types. The TSA also will facilitate analyses of interdependencies between transportation and the economy. For example, the TSA will estimate the total transportation costs embodied in each commodity delivered to final demand and assess the impact of structural changes in the economy on transportation demand. � Transportation Services as an Intermediate Input to Industrial Production As noted earlier, transportation services are components of both final demand and production. A larger share of transportation activities, particularly freight, however, is identified as an intermediate input 4 in the production of goods. Table 2-5 shows intermediate and final uses of for-hire transportation services in 1987, the last year for which data are available. Nearly 59 percent of for-hire transportation was destined for intermediate consumption in 1987. Intermediate usage accounted for a high percentage of the total output of pipelines and motor freight. Fiftysix percent of railroad output was consumed as intermediate input. Water and air transport were oriented more toward final demand, with only 33 percent and 46 percent, respectively, consumed as intermediate input. Transportation’s importance as an input to production varies by industry. Table 2-6 presents the direct and indirect for-hire transportation inputs 5 required to produce and deliver a dollar’s 4 An intermediate input is defined as goods, materials, and services used as inputs in the production of other goods or services. Intermediate inputs can be categorized as either direct or indirect (see footnote 5). 5 Direct inputs are defined as goods, materials, and services that are used directly in the production of a product or service; e.g., steel is a direct input to the production of automobiles. Indirect inputs are defined as goods, materials, and services that are used in the production of inputs to the production of a product or service; e.g., steel is an indirect input to transportation services because it is used in the production of transportation equipment.
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Bureau of Transportation Statistics
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U.S. DEPARTMENT OF TRANSPORTATION F
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5 THE STATE OF TRANSPORTATION STATI
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List of Figures PART I: THE STATE O
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9 AN INTERNATIONAL COMPARISON OF TR
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8 TRANSPORTATION AND AIR QUALITY: A
Page 14 and 15: well as the condition and performan
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Page 108 and 109: _____. 1996. 1995 Traffic Crashes,
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92 � Transportation Statistics An
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100 � Transportation Statistics A
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tion accounts for about one-ninth o
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cases the results have fallen short
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� Water Pollution The major sourc
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vehicles significantly lower the pe
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Total social cost at quantity Q' wh
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such as the Clean Air Act and Amend
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C H A P T E R S E V E N ENVIRONMENT
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CO emissions, 45 percent of all nit
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Index, 1970 = 1.0 2.5 2.0 1.5 1.0 0
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highway vehicles emit only half the
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7-3). VOC emissions from mobile sou
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1988; before 1988, PM-10 was not di
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new CAAA regulations required a red
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that without the improvement, VOC e
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fuels are derived from natural gas
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Gallons (millions) 25 20 15 10 5 B
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The Strategic Targeting and Respons
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EPNdB Large jet—Stage 1 (L) Large
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� Aircraft Noise Aircraft noise b
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Chapter 7 Environmental Trends and
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iron, and other metals, and greater
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Re-use Waste tire inventory Process
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� Transportation of Hazardous Mat
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Netherlands employ compensatory pro
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Billions of 1990 dollars 30 25 20 1
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Developing the information needed f
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_____. 1990. Pollutant Loadings and
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Index, 1980 = 100 A. CO emissions,
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Appendices
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AAMVA American Association of Motor
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ISTEA Intermodal Surface Transporta
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U.S. to Metric Length (approximate)
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A Aboveground storage tanks, xxi, 1
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C CAA. See Clean Air Act CAAA. See
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Energy efficiency combination truck
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evenues, 53-56 subsidies paid to op
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Malaysia emissions control efforts,
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energy demand projections, 95 exter
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Tires burning, 158 disposal, xxi, 1
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physical condition and performance,
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