Land use
While it is true that transport uses land, it is not clear that this phenomenon should be regarded as a
social cost in the same way that noise and pollution certainly are. This is because the land for transport
projects is usually purchased from its former owners when the infrastructure is built. In principle, this
transaction takes place at a price that is similar to the market value. Therefore, including the consumption of
space in social costs would imply that the price of the land does not reflect its social scarcity, an assumption
which would have to be demonstrated in each particular case.