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Three major system innovations have transformed transportation in the past two centuries with profound and far-reaching impacts (Shaheen, 1999). First came the widespread adoption of interurban rail in the mid 1800s, several decades later came the introduction of electric urban rail, and then automobiles in the early 1900s. Railroads transformed the nature of business, electric-rail transformed collection of neighborhoods into metropolitan regions, and finally the automobile transformed lifestyle with maximum comfort and convenience in personal mobility. These innovations not only shaped transportation but also much more of our economy and society (Shaheen, 1999). In the modern world of rapid change, it is remarkable how profoundly the motor vehicle has revolutionized society, and economy (Shaheen, 1999). Providing large mobility benefits, private automobiles have become deeply entrenched, continuing to increase their share of travel, even in countries with high fuel and vehicle taxes, dense land use pattern, and high quality transit services. Indeed, private vehicles now account for about 80 percent of all motorized passenger travel in virtually all OECD (Organization for Economic Cooperation and Development) countries (Shaheen et al, 1998). This sweeping transformation of travel from collective conveyance to private vehicle generates large benefit on mobility and flexibility but also large costs including higher energy consumption, severe congestion, air pollution, noise pollution, accident, and other related impacts (Shaheen, et al, 1998). Public space in cities is increasingly dominated by cars, both in moving and parked, which are preventing other activities that are the lifeblood of the city from taking place. These spatial problems cannot really be solved by technical fixes (Shaheen, et al, 1998). Shaheen, et al (1999), in their paper mentioned that transportation services and activities could be conducted more efficiently. But they are not, information about alternative modes and services is not well matched to travelers‟ needs, public transit is either unavailable or inconvenient, and private vehicles are not the economic match to all mobility needs. In order to encourage a change, a „new form of urban mobility‟ called carsharing or shared vehicle system has recently evolved in many cities in Europe, North America, and around the world (Bernard and Collins, 1998).


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