The Transportation factor includes the yearly total cost of operating automobile(s) and/or equivalent commuter expense for ten miles. The cost of operating an automobile defaults to 20 miles round trip daily, maintenance, taxes and licensing fees, insurance, gasoline costs including taxes, etc. Costs vary according to changes to number of vehicles, combined value and combined, annual mileage/kilometers. Sources include IRS allowed reimbursement policies, local gasoline, insurance, licensing and maintenance/service prices.
The Transportation estimates use local data on commuting patterns and city dispersion modeling combined with fuel cost factors, public transportation, and efficiency patterns of public transportation in relationship to a transportation price level index. A relative cost of airline travel component is also included. In major cities, where parking and/or tolls add substantial costs, estimates are included for both during regular business hours.
See Two City Comparison - Background for more information.