Assessment of Externalities Associated to the Use of Motorcycles in Colombia

The accelerated growth of the stock of motorcycles in Colombia, as in other countries, gives rise to the need to assess the benefits and costs to society associated to the use of vehicles of this type. This paper calculates these costs and benefits by means of surveys, interviews and information available in the literature. It also uses economic analysis of externalities to estimate the optimum number of these vehicles for the country. It was found that, given the prevailing costs and benefits, there is currently a surplus of motorcycles in the country. This result is robust to changes in the assumptions used to calculate the costs. It is expected that the findings regarding the nature and magnitude of these costs and benefits and the externalities analysis will become a relevant input for the design and adoption of effective policies aimed at regulating and rationalizing the use of motorcycles in the country.