Economics of Transportation


Economics of Transportation is a field of study dedicated to the allocation of transportation resources. The field is critical to both transport planning and institutional development of transportation in a country. Since transport and economic development is interdependent and their relationships are considered to be dynamic, economics of transportation provides methodologies to carry out research and studies to understand such complex and dynamic relationships. Economics of transportation has both macro and micro approaches to study an economic phenomenon. In a macroeconomic sense, areas like regional economic linkages, impact of transport development, institutions for regulations, market structure for various modes of transport and industrial location and transport corridors are covered. In case of micro approach, areas like transport pricing, pricing and technology, externalities and pricing, demand analysis and regulation of transport industry are covered. AITD has been working in these areas. It has published several research studies in the field of economics of transportation.


Transport and Poverty

Transport facilitates economic development which means transport has impact on social well being of the people. Development of transport infrastructure reduces poverty which is multidimensional in the context of impact of development of transport infrastructure.



Research Studies

1. Socio-economic Impact of 4-laning of National Highway on Rural Population – Phase II
2. Socio-economic Impact of 4-laning of National Highway on Rural Population – Phase I


1. Access, Transport and Poverty Linkages
Transport and Externalities

Transport and Externalities

Transport imposes negative externalities on society. These externalities include greenhouse gas emissions, accidents, congestion and other pollution. Sustainable transport policy and practices are integral part of transport planning. Therefore, use of economic instruments to correct transport related externalities are burgeoning field of economics of transportation.


Research Studies

1. Environmental and Social Sustainability of Transport - Comparative Study of Rail and Road
2. Transport-Energy Nexus: Towards Sustainability


1. Transport-Energy Nexus: Towards Sustainability


1. Challenges of Transition from Fossil Fuels to Green Regimes
2. Sustainable Transport Pricing in India