Management of urban mobility to control climate change in cities in Spain

The need to decarbonize urban mobility is one of the main motivations for all countries to achieve reduction targets for greenhouse gas (GHG) emissions. In general, the transport modes that have experienced the most growth in recent years tend to be the most polluting. Most efforts have focused on improvements in vehicle efficiency and on the renewal of vehicle fleets; more emphasis should be placed on strategies related to the management of urban mobility and modal share. Research of individual travel that analyzes carbon dioxide (CO2) emissions and car and public transport share in daily mobility will enable better assessments of the potential of urban mobility measures introduced to limit GHG emissions produced by transport in cities. The climate change impacts of daily mobility in Spain are explored with data from two national travel surveys in 2000 and 2006, and a method for estimating the CO2 emissions associated with each journey and each surveyed individual is provided. The results demonstrate that from 2000 to 2006, daily mobility has increased and has led to a 17% increase in CO2 emissions. When these results are separated by transport mode, cars prove to be the main contributor to that increase, followed by public transport. More focus should be directed toward modal shift strategies, which take into account not only the number of journeys but also the distance traveled. These contributions have potential applications in the assessment of current and future urban transport policies related to low-carbon urban transportation.

Intermodal exchange stations in the city of Madrid

The City of Madrid is putting into operation Intermodal Exchange Stations (IESs) to make connections between urban and suburban transportation modes easier for users of public transportation. The purpose of this article is to evaluate the actual effects that the implementation of IESs in the City of Madrid has on the affected stakeholders: users, public transportation operators, infrastructure managers, the government, the abutters and other citizens. We develop a methodology intended to help assess the welfare gains and losses for each stakeholder. Then we apply this methodology to the case study of the Avenida de América IES in the city of Madrid. We found that it is indeed possible to arrive at win–win solutions for the funding of urban transportation infrastructure, as long as the cost-benefit ratio of the project is high enough. Commuters save travel time. Bus companies diminish their costs of operation. The abutters gain in quality of life. The private operator of the infrastructure makes a fair profit. And the government is able to promote these infrastructure facilities without spending more of its scarce budgetary resources.

Modelling the relationship between urban environment and travel behaviour: policy and indicators

Due to the necessity to undertake activities, every year people increase their standards of travelling (distance and time). Urban sprawl development plays an important role in these "enlargements". Thus, governments invest money in an exhaustiva search for solutions to high levels of congestion and car-trips. The complex relationship between urban environment and travel behaviour has been studied in a number of cases. Thus, the objective of this paper is to answer the important question of which land-use attributes influence which dimensions of travel behaviour, and to verify to what extent specific urban planning measures affect the individual decision process, by exhaustiva statistical and systematic tests. This paper found that a crucial issue in the analysis of the relationship between the built environment and travel behaviour is the definition of indicators. As such, we recommend a feasible list of indicators to analyze this relationship.

Del plan a la realidad: gobernanza y toma de decisiones en los procesos de regeneración urbana. El caso de Boston = From plan to reality: governance and decision-making in urban regeneration processes in Boston

En las últimas tres décadas, las dinámicas de restructuración económica a nivel global han redefinido radicalmente el papel de las ciudades. La transición del keynesianismo al neoliberalismo ha provocado un cambio en las políticas urbanas de los gobiernos municipales, que han abandonado progresivamente las tareas de regulación y redistribución para centrarse en la promoción del crecimiento económico y la competitividad. En este contexto, muchas voces críticas han señalado que la regeneración urbana se ha convertido en un vehículo de extracción de valor de la ciudad y está provocando la expulsión de los ciudadanos más vulnerables. Sin embargo, la regeneración de áreas consolidadas supone también una oportunidad de mejora de las condiciones de vida de la población residente, y es una política necesaria para controlar la expansión de la ciudad y reducir las necesidades de desplazamiento, promoviendo así ciudades más sostenibles. Partiendo de la hipótesis de que la gobernanza de los procesos de regeneración urbana es clave en el resultado final de las operaciones y determina el modelo de ciudad resultante, el objetivo de esta investigación es verificar si la regeneración urbana es necesariamente un mecanismo de extracción de valor o si puede mejorar la calidad de vida en las ciudades a través de la participación de los ciudadanos. Para ello, propone un marco de análisis del proceso de toma de decisiones en los planes de regeneración urbana y su impacto en los resultados de los planes, tomando como caso de estudio la ciudad de Boston, que desde los años 1990 trata de convertirse en una “ciudad de los barrios”, fomentando la participación ciudadana al tiempo que se posiciona en la escena económica global. El análisis se centra en dos operaciones de regeneración iniciadas a finales de los años 1990. Por un lado, el caso de Jackson Square nos permite comprender el papel de la sociedad civil y el tercer sector en la regeneración de los barrios más desfavorecidos, en un claro ejemplo de urbanismo “desde abajo” (bottom-up planning). Por otro, la reconversión del frente marítimo de South Boston para la construcción del Distrito de Innovación nos acerca a las grandes operaciones de regeneración urbana con fines de estímulo económico, tradicionalmente vinculadas a los centros financieros (downtown) y dirigidas por las élites gubernamentales y económicas (la growth machine) a través de procesos más tecnocráticos (top-down planning). La metodología utilizada consiste en el análisis cualitativo de los procesos de toma de decisiones y la relación entre los agentes implicados, así como de la evaluación de la implementación de dichas decisiones y su influencia en el modelo urbano resultante. El análisis de los casos permite afirmar que la gobernanza de los procesos de regeneración urbana influye decisivamente en el resultado final de las intervenciones; sin embargo, la participación de la comunidad local en la toma de decisiones no es suficiente para que el resultado de la regeneración urbana contrarreste los efectos de la neoliberalización, especialmente si se limita a la fase de planeamiento y no se extiende a la fase de ejecución, y si no está apoyada por una movilización política de mayor alcance que asegure una acción pública redistributiva. Asimismo, puede afirmarse que los procesos de regeneración urbana suponen una redefinición del modelo de ciudad, dado que la elección de los espacios de intervención tiene consecuencias sobre el equilibrio territorial de la ciudad. Los resultados de esta investigación tienen implicaciones para la disciplina del planeamiento urbano. Por una parte, se confirma la vigencia del paradigma del “urbanismo negociado”, si bien bajo discursos de liderazgo público y sin apelación al protagonismo del sector privado. Por otra parte, la planificación colaborativa en un contexto de “responsabilización” de las organizaciones comunitarias puede desactivar la potencia política de la participación ciudadana y servir como “amortiguador” hacia el gobierno local. Asimismo, la sustitución del planeamiento general como instrumento de definición de la ciudad futura por una planificación oportunista basada en la actuación en áreas estratégicas que tiren del resto de la ciudad, no permite definir un modelo coherente y consensuado de la ciudad que se desea colectivamente, ni permite utilizar el planeamiento como mecanismo de redistribución. ABSTRACT In the past three decades, the dynamics of global economic restructuring have radically redefined the role of cities. The transition from keynesianism to neoliberalism has caused a shift in local governments’ urban policies, which have progressively abandoned the tasks of regulation and redistribution to focus on promoting economic growth and competitiveness. In this context, many critics have pointed out that urban regeneration has become a vehicle for extracting value from the city and is causing the expulsion of the most vulnerable citizens. However, regeneration of consolidated areas is also an opportunity to improve the living conditions of the resident population, and is a necessary policy to control the expansion of the city and reduce the need for transportation, thus promoting more sustainable cities. Assuming that the governance of urban regeneration processes is key to the final outcome of the plans and determines the resulting city model, the goal of this research is to verify whether urban regeneration is necessarily a value extraction mechanism or if it can improve the quality of life in cities through citizens’ participation. It proposes a framework for analysis of decision-making in urban regeneration processes and their impact on the results of the plans, taking as a case study the city of Boston, which since the 1990s is trying to become a "city of neighborhoods", encouraging citizen participation, while seeking to position itself in the global economic scene. The analysis focuses on two redevelopment plans initiated in the late 1990s. The Jackson Square case allows us to understand the role of civil society and the third sector in the regeneration of disadvantaged neighborhoods, in a clear example of bottom-up planning. On the contrary, the conversion of the South Boston waterfront to build the Innovation District takes us to the big redevelopment efforts with economic stimulus’ goals, traditionally linked to downtowns and led by government and economic elites (the local “growth machine”) through more technocratic processes (top-down planning). The research is based on a qualitative analysis of the processes of decision making and the relationship between those involved, as well as the evaluation of the implementation of those decisions and their influence on the resulting urban model. The analysis suggests that the governance of urban regeneration processes decisively influences the outcome of interventions; however, community engagement in the decision-making process is not enough for the result of the urban regeneration to counteract the effects of neoliberalization, especially if it is limited to the planning phase and does not extend to the implementation of the projects, and if it is not supported by a broader political mobilization to ensure a redistributive public action. Moreover, urban regeneration processes redefine the urban model, since the choice of intervention areas has important consequences for the territorial balance of the city. The results of this study have implications for the discipline of urban planning. On the one hand, it confirms the validity of the "negotiated planning" paradigm, albeit under public leadership discourse and without a direct appeal to the leadership role of the private sector. On the other hand, collaborative planning in a context of "responsibilization" of community based organizations can deactivate the political power of citizen participation and serve as a "buffer" towards the local government. Furthermore, the replacement of comprehensive planning, as a tool for defining the city's future, by an opportunistic planning based on intervention in strategic areas that are supposed to induce change in the rest of the city, does not allow a coherent and consensual urban model that is collectively desired, nor it allows to use planning as a redistribution mechanism.

Integrated economic-hydrologic analysis of policy responses

Water is a vital resource, but also a critical limiting factor for economic and social development in many parts of the world. The recent rapid growth in human population and water use for social and economic development is increasing the pressure on water resources and the environment, as well as leading to growing conflicts among competing water use sectors (agriculture, urban, tourism, industry) and regions (Gleick et al., 2009; World Bank, 2006). In Spain, as in many other arid and semi-arid regions affected by drought and wide climate variability, irrigated agriculture is responsible for most consumptive water use and plays an important role in sustaining rural livelihoods (Varela-Ortega, 2007). Historically, the evolution of irrigation has been based on publicly-funded irrigation development plans that promoted economic growth and improved the socio-economic conditions of rural farmers in agrarian Spain, but increased environmental damage and led to excessive and inefficient exploitation of water resources (Garrido and Llamas, 2010; Varela-Ortega et al., 2010). Currently, water policies in Spain focus on rehabilitating and improving the efficiency of irrigation systems, and are moving from technocratic towards integrated water management strategies driven by the European Union (EU) Water Framework Directive (WFD).

Políticas urbanas de la Unión Europea desde la perspectiva de la planificación colaborativa: Las Iniciativas Comunitarias URBAN y URBAN II en España

Este trabajo lleva a cabo un análisis de la aportación que las políticas urbanas de la Unión Europea (UE), y en particular las dos fases de la Iniciativa Comunitaria URBAN2, han hecho a la práctica de la regeneración urbana en España desde la perspectiva de la Planificación Colaborativa. La adopción de la Planificación Colaborativa como marco conceptual ha provisto la base teórica, el punto de vista e hilo conductor desde el que se ha analizado la dimensión urbana de las políticas comunitarias, poniendo el foco específicamente en URBAN, a través de la realización de un estudio que ha profundizado en el contexto histórico y el debate teórico desde los que se pusieron las bases metodológicas de esta forma de incidir en la degradación urbana, propuesta por la Comisión Europea en 1994. Esto ha llevado a profundizar en el escenario británico de la regeneración urbana, en el que la investigación ha encontrado la referencia sobre la que en gran medida se gestó esta Iniciativa Comunitaria. El trabajo descrito ha permitido caracterizar URBAN como un instrumento de regeneración urbana que conlleva la asunción de un enfoque colaborativo, que en última instancia tiene como objetivo la transformación de la gobernanza. Asimismo, ha sentado las bases sobre las que se ha fundamentado el análisis de la materialización de la dimensión colaborativa de los programas URBAN y URBAN II implementados en España. Los resultados alcanzados por los programas, considerados a la luz de la profundización en la práctica de la regeneración urbana del país, han permitido llegar a conclusiones sobre la aportación que la dimensión colaborativa de URBAN ha hecho al contexto español y señalar un conjunto de líneas de investigación que suponen la continuación del camino emprendido por esta Tesis Doctoral. Summary This work analyses the contribution that the urban policy of the European Union (EU), and in particular the two rounds of the URBAN Community Initiative3, as its most especific instrument, have made to the urban regeneration practice in Spain from the perspective of Collaborative Planning. The adoption of Collaborative Planning as a conceptual framework has provided the theoretical base, the focus and the guiding principle from which to analyse the urban dimension of European policies, and particularly URBAN, through the development of a study that has delved into the historical context and the theoretical debate that laid the methodological foundations of this approach to fight urban degradation launched by the European Commission in 1994. This has included the study of the British scenario of urban regeneration, in which the research has found the reference point on which URBAN was largely conceived. The work described has allowed this Community Initiative to be characterised as a tool of urban regeneration which involved the adoption of a collaborative approach, whose ultimate aim was the transformation of governance. It has also laid the foundations on which the analysis of the implementation of the collaborative approach in the URBAN and URBAN II programmes developed in Spain has been based. The results attained by the programmes considered in light of the development of the practice of urban regeneration in the Spanish scenario, have led to conclusions about the contribution that the collaborative dimension of URBAN has made to the Spanish context and have resulted in the identification of a number of lines of research that represent the continuation of the path taken by this Thesis.

Transportation infrastructure impacts on firm location: the effect of a new metro line in the suburbs of Madrid

Firm location patterns emerge as a consequence of multiple factors, including firm considerations, labor force availability, market opportunities, and transportation costs. Many of these factors are influenced by changes in accessibility wrought by new transportation infrastructure. In this paper we use spatial statistical techniques and a micro-level data base to evaluate the effects of Madrid?s metro line 12 (known as Metrosur) expansion on business location patterns. The case study is the municipality of Alcorcon, which is served by the new metro line since 2003. Specifically, we explore the location patterns by different industry sectors, to evaluate if the new metro line has encouraged the emergence of a ?Metrosur spatial economy?. Our results indicate that the pattern of economic activity location is related to urban accessibility and that agglomeration, through economies of scale, also plays an important role. The results presented in this paper provide evidence useful to inform efficient transportation, urban, and regional economic planning.

Optimal and Long-Term Dynamic Transport Policy Design: Seeking Maximum Social Welfare through a Pricing Scheme.

This article presents an alternative approach to the decision-making process in transport strategy design. The study explores the possibility of integrating forecasting, assessment and optimization procedures in support of a decision-making process designed to reach the best achievable scenario through mobility policies. Long-term evaluation, as required by a dynamic system such as a city, is provided by a strategic Land-Use and Transport Interaction (LUTI) model. The social welfare achieved by implementing mobility LUTI model policies is measured through a cost-benefit analysis and maximized through an optimization process throughout the evaluation period. The method is tested by optimizing a pricing policy scheme in Madrid on a cordon toll in a context requiring system efficiency, social equity and environmental quality. The optimized scheme yields an appreciable increase in social surplus through a relatively low rate compared to other similar pricing toll schemes. The results highlight the different considerations regarding mobility impacts on the case study area, as well as the major contributors to social welfare surplus. This leads the authors to reconsider the cost-analysis approach, as defined in the study, as the best option for formulating sustainability measures.

Rebalancing urban mobility: a tale of four cities

The key of mobility in urban planning is not in dispute. Integrated strategies that take into account the interrelations among land use, transport supply and demand and the different transportation modes are more necessary than ever. In Europe, regulatory tools such as local mobility plans or traffic plans have been enforced for a long time, evolving into so-called sustainable urban transport plans (SUTP) ? that is, plans thatmerge urban planning,mobility governance, social awareness and environmental safeguards to develop a vision based on sustainability and equity. Indeed, SUTP are aimed at solving typical problems in current land use, such as urban sprawl, which make clear the need for a paradigm shift from transport (or mobility) planning to land use (or city) planning, thereby producing urban mobility plans that are fully aligned with integrated urban development plans. This paper describes how SUTP are articulated across Europe according to four case studies: Peterborough (UK), Chambe¿ry (France), Ferrara (Italy) and Pinto (Spain), to highlight variations and commonalities, both among the four national legal frameworks and the actual planning processes at the local level. Objectives, measures and indicators used in the monitoring and evaluation phases have been analysed and the results assessed. The main conclusion of the paper is that, as seen in these real-life examples, the lack of integration between spatial planning and transport strategies results in the unsustainability of urban areas and, therefore, in a significant loss of competitiveness.

Linking territorial foresight and urban planning

Este artículo muestra las oportunidades y beneficios de ligar la prospectiva territorial a los procesos de planificación urbana. Adicionalmente, este trabajo sugiere un enfoque para reforzar el método de diseño de escenarios con instrumentos analíticos que le doten de mayor profundidad y rigor.

Management of Urban Mobility to Control Climate Change in Cities

The need of decarbonization of urban mobility is one of the main priorities for all countries to achieve greenhouse gas (GHG) emissions reduction targets. In general, the transport modes which have experienced the most growth in recent years tend to be the most polluting. Most efforts have been focused on the vehicle efficiency improvements and vehicle fleet renewal; nevertheless more emphasis should be placed on strategies related to the management of urban mobility and modal share. Research of individual travel which analyzes CO2 emissions and car and public transport share in daily mobility will enable better assessments of the potential of urban mobility measures introduced to limit GHG emissions produced by transport in cities. This paper explores the sustainability impacts of daily mobility in Spain using data from two National Travel Surveys (NTSs) (2000 and 2006) and includes a method by which to estimate the CO2 emissions associated with each journey and each surveyed individual. The results demonstrate that in the 2000 to 2006 period, there has been an increase in daily mobility which has led to a 17% increase in CO2 emissions. When separated by transport mode, cars prove to be the main contributor to that increase, followed by public transport. More focus should be directed toward modal shift strategies which not only take the number of journeys into account but also consider distance. The contributions of this paper have potential applications in the assessment of current and future urban transport policies.

Mapping the firmographic mobility: a case study in a region of Madrid

Understanding the location patterns of firms within a region has proved to be an important factor to study the development of urban form. Moreover, the study of firms location patterns allows the implementation of the adequate policy strategies to increase firms location rate in certain areas, for example when practitioners are dealing with deprived zones. The aim of this paper is to map firmographic data as a function of its location over a certain period of time, and its employment weight in order to discuss which factors have a direct impact on the results and to highlight which specific areas need the adequate measures to promote employment and public transportation. As a case study, it is proposed to analyze the southwest region of Madrid. Spatial statistic methods were used for this study, which were found to be very efficient in order to evaluate which areas need special attention.

Assessing urban mobility through participatory scenario building and combined utility-regret assessment

La planificación de la movilidad sostenible urbana es una tarea compleja que implica un alto grado de incertidumbre debido al horizonte de planificación a largo plazo, la amplia gama de paquetes de políticas posibles, la necesidad de una aplicación efectiva y eficiente, la gran escala geográfica, la necesidad de considerar objetivos económicos, sociales y ambientales, y la respuesta del viajero a los diferentes cursos de acción y su aceptabilidad política (Shiftan et al., 2003). Además, con las tendencias inevitables en motorización y urbanización, la demanda de terrenos y recursos de movilidad en las ciudades está aumentando dramáticamente. Como consecuencia de ello, los problemas de congestión de tráfico, deterioro ambiental, contaminación del aire, consumo de energía, desigualdades en la comunidad, etc. se hacen más y más críticos para la sociedad. Esta situación no es estable a largo plazo. Para enfrentarse a estos desafíos y conseguir un desarrollo sostenible, es necesario considerar una estrategia de planificación urbana a largo plazo, que aborde las necesarias implicaciones potencialmente importantes. Esta tesis contribuye a las herramientas de evaluación a largo plazo de la movilidad urbana estableciendo una metodología innovadora para el análisis y optimización de dos tipos de medidas de gestión de la demanda del transporte (TDM). La metodología nueva realizado se basa en la flexibilización de la toma de decisiones basadas en utilidad, integrando diversos mecanismos de decisión contrariedad‐anticipada y combinados utilidad‐contrariedad en un marco integral de planificación del transporte. La metodología propuesta incluye dos aspectos principales: 1) La construcción de escenarios con una o varias medidas TDM usando el método de encuesta que incorpora la teoría “regret”. La construcción de escenarios para este trabajo se hace para considerar específicamente la implementación de cada medida TDM en el marco temporal y marco espacial. Al final, se construyen 13 escenarios TDM en términos del más deseable, el más posible y el de menor grado de “regret” como resultado de una encuesta en dos rondas a expertos en el tema. 2) A continuación se procede al desarrollo de un marco de evaluación estratégica, basado en un Análisis Multicriterio de Toma de Decisiones (Multicriteria Decision Analysis, MCDA) y en un modelo “regret”. Este marco de evaluación se utiliza para comparar la contribución de los distintos escenarios TDM a la movilidad sostenible y para determinar el mejor escenario utilizando no sólo el valor objetivo de utilidad objetivo obtenido en el análisis orientado a utilidad MCDA, sino también el valor de “regret” que se calcula por medio del modelo “regret” MCDA. La función objetivo del MCDA se integra en un modelo de interacción de uso del suelo y transporte que se usa para optimizar y evaluar los impactos a largo plazo de los escenarios TDM previamente construidos. Un modelo de “regret”, llamado “referencedependent regret model (RDRM)” (modelo de contrariedad dependiente de referencias), se ha adaptado para analizar la contribución de cada escenario TDM desde un punto de vista subjetivo. La validación de la metodología se realiza mediante su aplicación a un caso de estudio en la provincia de Madrid. La metodología propuesta define pues un procedimiento técnico detallado para la evaluación de los impactos estratégicos de la aplicación de medidas de gestión de la demanda en el transporte, que se considera que constituye una herramienta de planificación útil, transparente y flexible, tanto para los planificadores como para los responsables de la gestión del transporte. Planning sustainable urban mobility is a complex task involving a high degree of uncertainty due to the long‐term planning horizon, the wide spectrum of potential policy packages, the need for effective and efficient implementation, the large geographical scale, the necessity to consider economic, social, and environmental goals, and the traveller’s response to the various action courses and their political acceptability (Shiftan et al., 2003). Moreover, with the inevitable trends on motorisation and urbanisation, the demand for land and mobility in cities is growing dramatically. Consequently, the problems of traffic congestion, environmental deterioration, air pollution, energy consumption, and community inequity etc., are becoming more and more critical for the society (EU, 2011). Certainly, this course is not sustainable in the long term. To address this challenge and achieve sustainable development, a long‐term perspective strategic urban plan, with its potentially important implications, should be established. This thesis contributes on assessing long‐term urban mobility by establishing an innovative methodology for optimizing and evaluating two types of transport demand management measures (TDM). The new methodology aims at relaxing the utility‐based decision‐making assumption by embedding anticipated‐regret and combined utilityregret decision mechanisms in an integrated transport planning framework. The proposed methodology includes two major aspects: 1) Construction of policy scenarios within a single measure or combined TDM policy‐packages using the survey method incorporating the regret theory. The purpose of building the TDM scenarios in this work is to address the specific implementation in terms of time frame and geographic scale for each TDM measure. Finally, 13 TDM scenarios are built in terms of the most desirable, the most expected and the least regret choice by means of the two‐round Delphi based survey. 2) Development of the combined utility‐regret analysis framework based on multicriteria decision analysis (MCDA). This assessment framework is used to compare the contribution of the TDM scenario towards sustainable mobility and to determine the best scenario considering not only the objective utility value obtained from the utilitybased MCDA, but also a regret value that is calculated via a regret‐based MCDA. The objective function of the utility‐based MCDA is integrated in a land use and transport interaction model and is used for optimizing and assessing the long term impacts of the constructed TDM scenarios. A regret based model, called referente dependent regret model (RDRM) is adapted to analyse the contribution of each TDM scenario in terms of a subjective point of view. The suggested methodology is implemented and validated in the case of Madrid. It defines a comprehensive technical procedure for assessing strategic effects of transport demand management measures, which can be useful, transparent and flexible planning tool both for planners and decision‐makers.

Methodology for assessing regional economic impacts of charging HGVs in Spain: an integrated approach through a random utility based multiregional input-output and a road transportation network model

An integrated approach composed of a random utility-based multiregional input-output model and a road transport network model was developed for evaluating the application of a fee to heavy-goods vehicles (HGVs) in Spain. For this purpose, a distance-based charge scenario (in euros per vehicle kilometer) for HGVs was evaluated for a selected motorway network in Spain. Although the aim of this charging policy was to increase the efficiency of transport, the approach strongly identified direct and indirect impacts on the regional economy. Estimates of the magnitude and extent of indirect effects on aggregated macroeconomic indicators (employment and gross domestic product) are provided. The macroeconomic effects of the charging policy were found to be positive for some regions and negative for other regions.

Does high speed rail compete fairly with other transportation modes? Madrid-Barcelona case study

Transportation modes produce many external costs such as congestion, accidents, and environmental impacts (pollution, noise and so on). From the microeconomic theory it is well known that in order to maximize social welfare, transportation modes should internalize the marginal costs they produce. Allocative efficiency is achieved when all transportation modes are priced at their social marginal cost. The objective of this research is to evaluate to what extent different passenger transport modes internalize their social marginal costs. This analysis is important since it affects the competitiveness of the different transport modes for a given OD pair. The case study analyzed is the corridor Madrid-Barcelona in Spain and the different transport modes have been considered (cars, buses, high-speed train and air). The research calculates the marginal social cost per user for each transportation mode, and it compares it with the average fare—allowing for the effect of discriminatory taxes—currently paid by the users. The external costs are calculated according to the guidelines established by the European Union. The gap between the marginal social cost and the price paid by users will provide the extra cost per passenger that each transport mode should have to pay for internalizing the external cost it produces. The research shows that external costs already produced by road and air transport modes are much higher than those produced by rail. However, the results show that road transport already internalizes every external costs it produces because users pay high fuel taxes. In other words, although rail transportation produces lower external costs, road transportation pays more than it should on the basis of the social marginal costs. The results of this work might be of help for Europ ean policy actions to be undertaken in the future.