The transportation system is one of the main sectors with significant climate impact. In the U.S. it is the second main emitter of carbon dioxide. Its impact in terms of emission of carbon dioxide is well recognized. But a number of aerosol species have a non-negligible impact. The radiative forcing due to these species needs to be quantified. A radiative transfer code is used. Remote sensing data is retrieved to characterize different regions. The radiative forcing efficiency for black carbon are 396 ± 200 W/m²/AOD for the ground mode and 531 ± 190 W/m²/AOD for the air transportation, under clear sky conditions. The radiative forcing due to contrail is 0.14 ± 0.06 W/m² per percent coverage. Based on the forcing from the different species emitted by each mode of transportation, policies may be envisioned. These policies may affect demand and emissions of different modes of transportation. Demand and fleet models are used to quantify these interdependencies. Depending on the fuel price of each mode, mode shifts and overall demand reduction occur, and more fuel efficient vehicles are introduced in the fleet at a faster rate. With the introduction of more fuel efficient vehicles, the effect of fuel price on demand is attenuated. An increase in fuel price of 50 cents per gallon, scaled based on the radiative forcing of each mode, results in up to 5% reduction in emissions and 6% reduction in radiative forcing. With technologies, significant reduction in climate impact may be achieved.