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New car Used car Gas and oil Gas taxes Finance charges Maintenance Insurance Intercity Transit Registration fees Other between the two groups are found in the vehicle purchases and other vehicles expenditures categories. Black consumers spend a greater share on vehicle purchases while white consumers spend more for other vehicle expenses. These differences are, in part, a product of substituting vehicle leasing for vehicle purchases among white households. The area of significant variation in spending is in the category of purchased transportation services. Black and white consumers spend about 1 percent of total expenditures on purchased transportation. Black consumers, however, spend twice as much on taxis as do white consumers. Also, black consumer spending on public transit is more than three times that of white consumers. White consumers spend substantially more than blacks for all categories of intercity travel—about three times more for air and rail travel. Chapter 2 Transportation and the Economy � 47 FIGURE 2-4: DETAILED CONSUMER EXPENDITURES ON TRANSPORTATION, 1993 AND 1994 1.1 1.2 1.6 1.8 3.9 4.5 4.4 5.1 4.0 4.2 5.7 6.0 10.3 12.2 11.4 11.3 12.4 11.4 20.1 21.7 22.4 23.4 0 5 10 15 Percent 20 25 30 SOURCES: U.S. Department of Labor, Bureau of Labor Statistics, “Consumer Expenditures Survey,” 1993; and unpublished data from the “Consumer Expenditures Survey,” 1994. 1993 1994 � Spending Away from Home Consumer expenditures on travel while away from home are difficult to ascertain. The CES sheds valuable light on that segment of travel, but several expenses are not included, such as any travel paid for or reimbursed by employers and institutions. Certain expenditures, such as taxicabs, can be easily identified as to whether the service was bought at home or on travel. Other spending, however, such as vehicle purchases or repairs, are more difficult to assign. An allocation based on miles traveled or another method would have to be developed in order to determine the split between expenses incurred at home and those incurred while traveling. Identifiable expenditures reported by the CES are shown in table 2-10. According to the table, out-of-town consumer spending added up to an average of about $450 per household in
48 � Transportation Statistics Annual Report 1996 Vehicle purchases account for a large percentage of household transportation budgets. According to the Consumer Price Index, new car costs have risen less rapidly than general costs since 1970, and far less rapidly than used car costs. This may seem counterintuitive, but the reason is that the average new car of the 1990s is very different from the average new car of the 1970s, as explained below. New Car Costs BOX 2-1: VEHICLE OWNERSHIP AND OPERATING COSTS The average price of a new car, in current dollars, rose from about $3,500 in 1970 to almost $20,000 in 1994. 1 In 1990 dollars, correcting for inflation, new car prices hovered around $12,000 throughout the 1970s, then rose to about $16,900 by 1995. 1 American Automobile Manufacturers Association, Motor Vehicle Facts & Figures (Washington, DC: 1995), p. 60. Current dollars (thousands) 20 18 16 14 12 10 8 6 4 2 FIGURE 1: TRENDS IN THE COST OF AUTOMOBILES, 1970–93 1967 comparable car without added equipment Average new car price 1967 comparable car with added equipment 0 1970 1974 1978 1982 1986 1990 1993 NOTES: 1967 comparable = basic car as of 1967. 1967 with added equipment = basic 1967 car with costs for mandated federal safety and emissions equipment. Average new car price = basic car with mandated equipment, plus amenities and improvements added. SOURCE: American Automobile Manufacturers Association, Motor Vehicle Facts & Figures (Washington, DC: 1989 and 1994). Figure 1 breaks down the trend in vehicle prices into three components of vehicle costs. The bottom curve tracks the price of a basic vehicle, comparable in design and equipment to a 1967 model vehicle. The middle curve shows the impact on price of added equipment and modifications required by federal and state mandated safety and emissions regulations. These requirements increased vehicle price to about $11,800. The top curve adds the price increase attributable to improvements and amenities demanded by consumers, including air conditioning, power assists, and stereo equipment. Today, these options are standard on most new vehicles. In 1993, a family earning the median national income needed about 26 weeks of salary to purchase a new car compared with less than 20 weeks in the 1970s (see figure 2). (continued) Weeks of median household earnings FIGURE 2: WEEKS OF HOUSEHOLD EARNINGS REQUIRED TO PURCHASE AN AVERAGE-PRICED NEW CAR 30 25 20 15 10 5 0 �� 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 SOURCE: American Automobile Manufacturers Association, Motor Vehicle Facts & Figures 94 (Washington, DC: 1994).
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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
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well as the condition and performan
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cance of transportation is comparab
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U.S. society over the lifetime of p
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98 � 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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