For years we have had a do-it-yourself telework cost-benefit analysis on our website. That analysis focuses mainly on the direct costs and benefits of telecommuting versus the daily commutes between home and work. Now let’s expand that analysis with some thoughts about the other costs of the commute; pricing the commute.
To be comprehensive, pricing the commute requires some analysis of the other factors beside out-of-pocket expenses: those so-called externalities. These additional factors include: the drag; health hazards; physical dangers and psychological effects. An article by Nathan Brooker in the 25 March 2017 Financial Times FTWeekend edition, titled Commuter pain or gain? gives one such analysis although it focuses on mass transit rather than private cars.
Let’s look at some of these factors, focusing on pricing the commute by private car. Continue reading Pricing the commute