Understanding transport costs in remote Australia
Understanding transport costs in remote Australia Journal Article
International Journal of Transport Economics
- Author(s): Spandonide, B.
- Published: 2016
- Volume: XLIII
Abstract: This article reports on a study of the specificities of transport costs supplying remote Australian communities and enterprises. The author reminds readers that many Australian population centers are small and scattered over both great distances and in extreme climatic conditions. In addition, the country faces high supply chain costs and low median incomes, particularly in remote areas where a large number of Aboriginal and Torres Strait Islander people live. The author develops a methodological framework specific to the remote Australian context that includes a comprehensive evaluation of transport externalities. The sampling includes eight sites across remote Australia reflecting a wide range of communities in terms of population sizes and geographic conditions. Transport costs are then evaluated for different transportation modes. The author identifies a critical aspect of transport systems characterizing remote Australia: not having access to effective transport magnifies externalities. The author concludes that studying externalities can successfully provide some quantitative indication of accessibility costs. The author proposes the use of monetized indications to determine remoteness level as opposed to some of the stereotyping linear formulas currently used derived that are from distances or population center size.