Impacts of Motor Vehicle Operation on Water Quality in the United States - Clean-up Costs and Policies

This paper investigates the costs of controlling some of the environmental impacts of motor vehicle transportation on groundwater and on surface waters. We estimate that annualized costs of cleaning-up leaking underground storage tanks range from $0.8 billion to $2.1 billion per year over ten years. Annualized costs of controlling highway runoff from principal arterials in the US are much larger: they range from $2.9 billion to $15.6 billion per year over 20 years (1.6% to 8.3% of annualized highway transportation expenditures.) Some causes of non-point source pollution were unintentionally created by regulations or could be addressed by simple design changes of motor vehicles. A review of applicable measures suggests that effective policies should combine economic incentives, information campaigns, and enforcement, coupled with preventive environmental measures. In general, preventing water pollution from motor vehicles would be much cheaper than cleaning it up.